OUESTION 121. ) P and Q are partners sharing profits in the ratio of 1:2. R was manager who received the salary of 10,000 p.m. in addition to commission of 10% on net profits after charging such commission. Total remuneration to R amounted to 1,80,000. Profit for the year before charging salary and commission was : (A) 7,20,000 (B) 6,00,000 (C) 37,80,000 (D) 6,60,000
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Answer:
Correct option is
A
Rs. 1,56,000
Total remuneration = Salary + commission
= (RS-8,000 x 12) + RS-60,000(WN 1)
= RS-1,56,000.
Working notes:-
Net profit for commission = 13,56,000 - (8,000 x 12)
= RS-12,60,000.
Commission after charging such commission
= 12,60,000 x 5/105
= RS-60,000.
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