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A deed allows a partner commission of ten percent of net profit. Net profit before commission is fifty thousand rupees. If commission is calculated after charging commission what will be the commission?

Answer and explanation

Correct answer: About four thousand five hundred forty five rupees

When commission is after charging commission use profit multiplied by rate divided by one hundred plus rate. Here fifty thousand times ten by one hundred ten gives about four thousand five hundred forty five rupees.

Related tags

Partner CommissionAfter Charging CommissionNumericalPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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