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Question
Rani and Sumi are partners in a ratio of 1 : 2. Before profit distribution, Rani is entitled to 5% commission of the net profit (before charging such commission). Before charging the commission, firm's profit was ₹ 60,000. Sumi's share in profit will be:
Options
₹ 38,000
₹ 19,000
₹ 20,000
₹ 40,000
MCQ
Solution
₹ 38,000
Explanation:
`₹ 60,000 xx 5/100` = ₹ 3,000
Profit after commission = ₹ 60,000 − ₹ 3,000 = ₹ 57,000
Sumi's Share of profit = `₹ 57,000 xx 2/3` = ₹ 38,000
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Distribution of Accumulated Profits, Reserves and Losses
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