Question

12. What is the amount of commission to be shown in books of
accounts?
Gross Profit : * 1,00,000, salaries : * 44,000 Depreciation
Expense : 6,000, Insurance : 4,000 Salaries are paid for 11
months
Manager is allowed a commission of 5% on net profit after charging
such commission
(a) * 1,895
(b) 32,000
(c) 2,190
(d) 2,285​

Answer 1

Answer:

(c) 2190

Explanation:

Net profit = 1,00,000-44,000-6,000-4,000

=46,000

Manager's commission after charging such commission = rate of commission/100+rate of commission * net profit

=5/105*46,000

=2190.4761

=2190(approximately)