Question

Managers commission is 10% on net profit after charging such commission net profit is 154300

Answer 1

ANSWER :

★ Rs. 14027 will be the amount of manager's commission of 10% on Net Profit after charging such commission if the Net Profit is Rs. 154300.

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SOLUTION :

❖ Given :-

• Rate of manager's commission = 10%

• Net Profit after charging such commission = Rs. 154300

❖ To Find :-

• Amount of manager's commission = ?

❖ Formula Used :-

$\bigstar \: \: \bold{Manager's \: \: Commission = Net \: \: Profit \: \: before \: \: charging \: \: } \\ \bold{commission \times \dfrac{Rate \: \: of \: \: Commission }{100 + Rate \: \: of \: \: Commission }}$

❖ Calculation of Manager's Commission :-

$\bigstar \: \: \sf{Manager's \: \: Commission = Net \: \: Profit \: \: before \: \: charging \: } \\ \sf{commission \times \dfrac{Rate \: \: of \: \: Commission }{100 + Rate \: \: of \: \: Commission }} \\ \\ \sf{ \large{ = 154300 \times \frac{10}{100 + 10}}} \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \\ \\ \sf{ \large{ = 154300 \times \dfrac{10}{110}}} \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \\ \\ \sf{\large{ = 14027}} \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \:$

• Hence, the amount of commission payable to manager is Rs. 14027.

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MORE INFORMATION :

❖ Manager's Commission:-

• ➯ Sometimes the manager of a business firm is allowed remuneration in the form of commission on profits. Such commissions may be calculated on Gross Profit or Net Profit.

❖ Where the manager Commision manager is entitled to commission on Net Profit, it may take the following forms :-

• ➯ Commission on Net Profit before charging for deducting such commission.

• ➯ Commission on Net Profit after charging for deducting such commission.

❖ Commission on Net Profit before charging for deducting such commission :-

• ➯ When the manager is entitled to a commission on Net Profit before charging such commission, the amount of commission will be ascertained by applying the following formula :

$\bigstar \: \: \sf{Manager's \: \: Commission = Net \: \: Profit \: \: before \: \: charging \: \: } \\ \sf{commission \times \dfrac{Rate \: \: of \: \: Commission }{100 }}$

❖ Commission on Net Profit after charging for deducting such commission :-

• ➯ When the manager is entitled to a commission on Net Profit after charging such commission, the amount of commission will be ascertained by applying the following formula :

$\bigstar \: \: \sf{Manager's \: \: Commission = Net \: \: Profit \: \: before \: \: charging \: \: } \\ \sf{commission \times \dfrac{Rate \: \: of \: \: Commission }{100 + Rate \: \: of \: \: Commission }}$

Answer 2

Explanation:

the alternative to cash basis of accounting is called _basis of accounting