Question

Interest to be allowed @ 0.75 per cent per month on Partners Capital of ₹ 60 Lakh; Manager's Commission @ 5 per cent of Net Profit before charging such commission. If the Net Profit before charging interest on capital and manager's commission amounted to ₹ 14.85 Lakh, then manager's commission will be ...........................

A.47,250
B.74,250
C.45,000
D.1,01,250​

Answer 1

Explanation:

Intrest on capital = 60,00,000 ×0.75/100×12

= 5,40,000

Net profit after charging intrest on capital

Net profit = 14,85,000- 5,40,000

= 9,45,000

Manager commission @5%

commission = 9,45,000× 05/105

= 45,000

Option C is correct answer

manager commission is Rs 45,000

Answer 2

Answer:

47250

Explanation:

Profit Before charging interest on Capital and Commission = Rs.14,85,000/-

Interest (0.75%*12) 9% * Rs.5,40,000                                       =Rs.5,40,000/-

Profit After charging the Interest on Capital                            =Rs.9,45,000/-

Comission to manager (9,45,000*5%) = Rs.47250/-