A and B share profits in the ratio 3:2. A is entitled to a salary of ₹18,000, and B is entitled to a commission of 10% of the profit before charging commission. If the profit is ₹90,000, what amount of residual profit will be distributed between A and B?

Correct answer: ₹63,000

Since the profit before commission is ₹90,000, B’s commission is 10% × ₹90,000 = ₹9,000. A’s salary is ₹18,000. Therefore, residual profit = ₹90,000 − ₹18,000 − ₹9,000 = ₹63,000. ₹72,000 would result from deducting only the salary and ignoring the commission. In the exam, apply ‘commission before charging commission’ directly to the given profit.