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A and B share profits in the ratio 3:2. As per the deed, A is paid a commission of 10% of profit and then the remaining profit is shared. If the profit remaining for distribution after the commission is ₹45,000, what is A's share from the remaining profit?

Answer and explanation

Correct answer: Rupees twenty seven thousand

The commission has already been paid and the remaining profit is shared in the ratio 3:2. A's portion of the remaining = three parts out of total five parts, i.e. \(\frac{3}{3+2}\) × ₹45,000 = \(\frac{3}{5}\) × ₹45,000 = ₹27,000. Clarification: ₹45,000 is after commission, so we do not add the commission to this calculation unless the question asks for A's total receipts. The closest wrong option (₹22,500) would be obtained by taking half of the remainder, which is incorrect for a 3:2 split. Exam tip: to find the original profit P when remainder and commission% are given, use remainder = (1 − commission%)×P.

Related tags

Partnership AccountsPartnership DeedProfit Sharing RatioCommissionClass 12 AccountancyPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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