Question

Net profit before interest on loan and tax ₹400000
Interest on
Partner loan
₹50000Tax
Rate 30%
Manager commission 10% of net profit
Calculate manager commission

Answer 1

Answer:

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Explanation:

Profit and loss Appropriation Account

Particulars Amount Particulars Amount

To X's commission A/c

(55,000*10%) 5500 By net profit 55,000

To Y's commission

(55,000-5500)*10/110 4500

To profit transferred to-

X- 22,500

Y-22,500

Total 55,000 Total 55,000