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A deed allows a partner ten percent commission on profit before charging commission. Profit before commission is sixty thousand rupees. What is the commission?

Answer and explanation

Correct answer: Six thousand rupees

The direct answer is option A: rupees six thousand. The deed says the commission is 10% of profit before charging commission. Therefore the base is the profit already given, ₹60,000. Calculate step by step: commission = 10/100 × ₹60,000 = ₹6,000. The phrase “before charging commission” is important because it means we use the profit before subtracting this commission. Option A is correct. Option B, ₹5,445, is not the result of 10% of ₹60,000; it appears to come from a different type of question, such as commission on profit after charging commission, and cannot be used here. Option C, ₹7,000, is not 10% of ₹60,000. Option D, ₹3,000, is only 5% of ₹60,000. Do not subtract the commission first when the deed explicitly says profit before commission. If the wording had said commission on profit after charging commission, a different formula would be required. Memory cue: “before commission” means percentage × given profit.

Related tags

Partner CommissionBefore Charging CommissionNumerical

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