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Apurva and Archita are partners. Namita was a manager who received a salary of ₹ 1,10,000 per year in addition to a commission of 10% on net profits before charging such commission. - Accounts

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Question

Apurva and Archita are partners. Namita was a manager who received a salary of ₹ 1,10,000 per year in addition to a commission of 10% on net profits before charging such commission. Profit for the year is ₹ 4,40,000 after charging salary. Namita’s commission will be ______.

Options

  • ₹ 50,000

  • ₹ 55,000

  • ₹ 40,000

  • ₹ 44,000

MCQ
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Solution

Apurva and Archita are partners. Namita was a manager who received a salary of ₹ 1,10,000 per year in addition to a commission of 10% on net profits before charging such commission. Profit for the year is ₹ 4,40,000 after charging salary. Namita’s commission will be ₹ 44,000.

Explanation:

Namita’s commission is 10% of the net profit before charging her commission.

Commission = Net Profit × Rate of Commission

= `4,40,000 xx 10/100`

= ₹ 44,000

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Chapter 1: Accounting for Partnership Firms - Fundamentals - OBJECTIVE TYPE QUESTIONS [Page 1.197]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 1 Accounting for Partnership Firms - Fundamentals
OBJECTIVE TYPE QUESTIONS | Q 42. | Page 1.197
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