In a partnership firm, A is entitled to get monthly salary of ₹7,500. At the end of the year, firm earned a profit of ₹75,000 after charging A's Salary. If manager is entitled to a commission of 10% on net profits after charging his commission, Manager's commission will be what?
Answers
Answer:
15000
Explanation:
Yearly salary of A 7500x12 = 90000
Net profit of firm= profit + salary of A
= 75000+90000
=165000
Managers commission= 165000 x 10/110
= 165000 x 1/11
= 15000
Manager's commission will be ₹ 15,000.
Explanation:
Given, in a partnership firm, A is a partner who receives a monthly salary of ₹7,500. profit earned by the firm is given after charging partner A's salary, but we have to calculate commission to manager of 10 % on net profits, so first we have to calculate total net profit of the firm before charging A's monthly salary for the whole year which will be :-
A's total salary for the year = A's monthly salary * 12 ( a year has 12 months )
= 7,500 * 12
= ₹90,000
total net profit of the firm = profit after charging A's salary + A's total salary for the year
= 75,000 + 90,000
= ₹1,65,000
commission to manager ( @ 10 % ) will be charged after charging his commission will be calculated as :-
= total net profit of the firm * 10/110
= 1,65,000 * 10/110
= ₹15,000
[ here 10 + 100 = 110 is taken because commission is to be calculated after charging his commission ]