Question

3. Ram and Shyam are partners in the ratio of 3:2. Before profit distribution
Ram is entitled to 5%commisssion of the net profit (after charging such
commission). Before charging such commission, firm's profit was 42000.
Shyam's share in the profit will be:
O a) 16000
O b) 24000
O c) 26000
O d) 16400​

Answer 1

During the year profit prior to interest on capital but after charging B's salary ... of 5% of the profits is to be made in respect of Manager's Commission. ... B= 30000*6% = 1800, 4800, By net profit, 14250.

Answer 2

Answer:

Option a) Rs 16000

Explanation :

Solution :

Ratio of Ram and Shyam = 3 : 2

Ram : Shyam = 3 : 2

Ram's share = 3/5

Shyam's share = 2/5

Before profit distribution,

Ram's Commission = 5% of of the net profit (after charging such commission)

firm’s profit = Rs. 42,000

Ram's Commission = Net profit before commission × (Rate/100 + Rate)

= 42,000 × (5/(100 + 5))

= 42,000 × (5/105)

= 2,000

Ram's Commission = Rs. 2,000

= 42,000 - 2,000

= Rs. 40,000

Shyam's share = 2/5

= 40,000 × (2/5)

= 16,000

Shyam's share = Rs. 16,000

Hence, option a) Rs. 16,000

Shyam’s share in profit will be Rs. 16,000