Question

And b are partners in a firm. a is entitled to a salary of rs. 2,000p.m. together with a commission of 10% of net profit before charging any commission. b is entitled to a salary of 5,000 p.a. together with a commission of 10% of net profit after charging all commissions. net profit before charging any commission for the year 2020 was rs. 55,000. show the distribution of profit. [

Answer 1

Total profit 55000

Less A commission [ 10% of net

Profit.] 5500

49500

Less B commission after charging

all commision

(49500×10/110) = 4500

45000

Less salary of A 2000*12 24000

Less salary of B. 5000

16000

This 16000 will divide into partners