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InterviewSolution
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X and Y are partners in a firm. X is entitled to a salary of ₹ 10,000 per month and commission of 10% of the net profit after partners salaries but before charging commission. Y is entitled to a salary of ₹ 25,000 p.a. and commission of 10% of the net profit after chaging all commission and partners salaries. Net profit before providing for partners salaries and commission for the year ended 31st March, 2018 was ₹ 4,20,000, show distribution of profit. |
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Answer» ution of profit is given below:Explanation:X’s salary Y’s salary = Rs. 25,000 TOTAL = Rs. 1,45,000 Net profit given is Rs. 4,20,000 Calculation of Commission:X’s commission will be 10% of Profit after salaries (4,20,000 – 1,45,000 = Rs. 2,75,000) Y’s commission will be (10/100+rate) of profit after salaries (4,20,000 – 1,45,000 = Rs. 2,75,000- 27,500= Rs. 2,47,500) Total commission is 50,000 (27,500 + 22,500) Profit DISTRIBUTION:Profit distribution will be EQUALLY divided as: 4,20,000 – 1,45,000 - 50,000 = Rs. 2,25,000 |
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