Question

P and q are partners sharing profits in the ratio 1:2 . R was a manager who received a a salary of Rs 10,000 p.m. in addition to commission of 10%on net profit after charging such commission. Total remuneration to R amounted to Rs 1,80,000. Profit for the year before charging salary and commission was : a) 7,20,000 ; b) 6,00,000 ; c) 7,80,000; d) 6,60,000

Answer 1

Answer:

c

Explanation:

the profit will be 780000

Answer 2

GIVEN : P:Q = 1:2 ; Salary given to R is 10,000 per month; 10% commision is paid to R after charging such commission; Total remuneratioon to R is 1,80,000.

TO FIND :  Profit for the year before charging salary and commission

SOLUTION :

As, total remuneration is 1,80,000 and it includes salary as well as commission.

Salary is 10,000 per  month so for the year it will be 1,20,000.

So, from total remuneration we will deduct salary for the year and will get the commission.

1,80,000 - 1,20,000 = Commission

60,000 = Commission

Now, from the commission we will get the net profit

60,000 × $\frac{110}{10}$ = 6,60,000

Now in this profit we will add the salary now the profit is 7,80,000

Profit of the firm is 7,80,000.

Option C is the correct answer i.e. 7,80,000.