Question

A and B are partners in a firm. A is to get a commission of 10% of net profit before charging any commission. B is to get a commission of 10% on net profit after charging all commissions. Net profit before charging any commission was ₹ 55,000. Find out the commission of A and B.

Answer 1

Given: Net Profit before charging any commission = ₹ 55,000

A is entitled to 10% commission on net profit before charging any commission.

B is entitled to 10% commission on net profit after charging all commissions.

A’s commission = 10% of ₹ 55,000 

= `55,000 xx 10/100`

= 5,500

Since B’s commission is to be calculated on net profit after charging all commissions, we first deduct A’s commission.

Profit after charging A’s commission = 55,000 − 5,500

= 49,500

Let B’s commission be ₹ x.

x = 10% of (49,500 − x)

x = `10/100 (49,500 - x)`

x = 0.10 (49,500 − x)

x = 4,950 − 0.10x

x + 0.10x = 4,950

1.10x = 4,950

x = `(4,950)/1.10`

x = 4,500