Question

Arun and barun are partners in a firm. Arun is entitled to a commission of 10%on net profit after charging interest on capital and such commissions. Net profit of the firm is rupees 27000. Interest on Aaun's and Barun's capital are rupees 3000 and rupees 2000 respectively. Calculate Arun's commission

Answer 1

Arun's commission will be 2200

net profit =27000

less interest on cap =5000

=22000

now commission =10%of 22000=2200

hope this answer will help you

Answer 2

Explanation:

net profit of the firm = 27000

less: interest on capital = 5000

net profit after charging interest on capital = 22000

now,

since arun is entitled to a commission of 10% on net profit after charging interest on capitals and such commission = 22000× 10/110

= 2000