The deed states that A will receive a commission of 10% on net profit and net profit is Rs 80,000. What is A's commission?

Correct answer: Rs 8000

Core idea: ‘commission of 10% on net profit’ means take 10% of the stated net profit (assuming the problem gives the net profit after all adjustments). Calculation: 10% of Rs 80,000 = Rs 8,000, so the commission is Rs 8,000. Closest distractor B (Rs 8,800) is incorrect — it corresponds to an incorrect base or wrong percentage calculation; C and D are similarly wrong calculations. Exam tip: always check whether the given “net profit” is before or after charging the commission. If the profit given is before charging the commission, use the relation
\(\text{Commission}=\dfrac{p}{1+p}\times\text{Profit before commission}\) where p is the rate in decimal (e.g. 0.10).