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Partner A is to get (12%) commission on profit after profit distribution but before commission. Profit is (₹150000). On what base is commission calculated?

Answer and explanation

Correct answer: On full (₹150000)

If commission is on profit before commission the base is total profit. The phrase after profit distribution can confuse but commission is calculated first.

Related tags

PartnershipAdjustmentsCommission BasePartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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