In a partnership lirm, partner A is entitled a monthly salary of 7,500. At the end of the year, firm earned a profit of 75,000 after charging T’s salary. If the manager is entitled a commission of 10% on the net profit after charging his commission, Manager’s commission will be :
Explanation:
- Partner A's Salary: 7,500 X 12 = 90,000.
- Net Profit before salary = 75,000 + 90000 = 1,65,000
Manager commission = 1,65,000 X 10/(100+ Rate) = 1,65,000 X 10/110 = Rs 15,000
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By: santosh