Question

In a partnership firm, partner A is entitled to a monthly salary of ₹ 7,500. At the end of the year, the firm earned a profit of ₹ 75,000 after charging A’s salary. If the manager is entitled a commission of 10% on the net profit after charging his commission, the manager’s commission will be ______.

Options

• ₹ 7,500

• ₹ 16,500

• ₹ 8,250

• ₹ 15,000

Answer 1

In a partnership firm, partner A is entitled to a monthly salary of ₹ 7,500. At the end of the year, the firm earned a profit of ₹ 75,000 after charging A’s salary. If the manager is entitled a commission of 10% on the net profit after charging his commission, the manager’s commission will be ₹ 15,000.

Explanation:

Profit after charging A’s = ₹ 75,000

A’s salary = 7,500 × 12 = ₹ 90,000

Net Profit for the year = 75,000 + 90,000

= ₹ 1,65,000

Manager’s commission = `1,65,000 xx 10/(100 + "Rate")`

= `1,65,000 xx 10/(100 + 10)`

= `1,65,000 xx 10/110`

= ₹ 15,000