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A and B share profits in the ratio 2:1. B gets commission at 10% of net profit. Profit before commission is ₹90000. Commission is on net profit and not on profit after commission. What is B's commission?

Answer and explanation

Correct answer: ₹9000

When commission is on profit and not on profit after commission apply the rate directly. Ten percent of ₹90000 is ₹9000.

Related tags

PartnershipCommissionNet ProfitAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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