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Question
Ramesh and Suresh are partners in the ratio of 3 : 2. Before profit distribution, 'Ramesh is entitled to 5% commission of the net profit (after charging such commission). Before charging commission, firm's profit was ₹ 84,000. Suresh's share in profit will be ______.
Options
₹ 32,000
₹ 48,000
₹ 56,000
₹ 32,800
MCQ
Solution
Ramesh and Suresh are partners in the ratio of 3 : 2. Before profit distribution, 'Ramesh is entitled to 5% commission of the net profit (after charging such commission). Before charging commission, firm's profit was ₹ 84,000. Suresh's share in profit will be ₹ 32,000.
Explanation:
Firms profit after charging commission `= 84,000 xx 5/105 = 4000`
= 84,000 - 4,000 = 80,000
Suresh's share in profit = ₹ `80,000 xx 2/5 `= ₹ 32,000
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Change in Profit Sharing Ratio Among the Existing Partners
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