Seeta and Geeta are partners sharing profits and losses in the ratio 4 : 1. Meeta
was manager who received the salary of 4,000 p.m. in addition to a
commission of 5% on net profits after charging such commission. Profit for
the year is 6,78,000 before charging salary. Find the total remuneration of
Meeta.
Answers
Answer:
78000
Explanation:
Remuneration of Meeta.-
Salary = 4000*12=48000
Commission = (678000-48000)*5/105
=630000*5/105=30000
Total = 48000+30000=78000
Given:
Salary of Meeta= Rs.4,000 p.m.
Commission=5%
Profit= Rs. 6,78,000
To find:
The total remuneration of Meeta
Solution:
We can find the solution by following the given process-
We know that the net profit can be obtained by deducting the amount of salary from profits.
Meeta's salary= Rs.4,000 p.m
Total salary for a year=4000×12
= Rs. 48,000
Net profits= Profits of the year- Meeta's salary
= 6,78,000-48,000
=Rs. 6,30,000
Now, the amount of commission is 5% of net profits
Commission= Net profits×rate of commission/ (100+rate of commission)
=6,30,000×5/105
=6,30,000/21
=Rs.30,000
Meeta's total remuneration= salary+ commission
= 48,000+30,000
=Rs. 78,000
Therefore, the total remuneration of Meeta is Rs.78,000.