If profit is one lakh rupees and ten percent is transferred to reserve what is distributable profit?

Correct answer: Ninety thousand rupees

The direct answer is option A: ninety thousand rupees. Start with the total profit of ₹100,000. The reserve is 10% of this profit, so reserve = 10/100 × ₹100,000 = ₹10,000. Distributable profit means the amount left after transferring the reserve. Therefore, distributable profit = ₹100,000 − ₹10,000 = ₹90,000. Option A is correct because it gives this remaining amount. Option B, ₹10,000, is only the reserve amount, not the amount available for distribution. Option C, ₹110,000, adds the reserve to the profit, but a transfer to reserve is deducted from the amount available for distribution. Option D, ₹100,000, ignores the required reserve transfer. The important distinction is between total profit, reserve, and distributable profit. First calculate the reserve; then subtract it from total profit. Memory cue: “Reserve kept aside, balance is shared.”