If A gets commission on profit, on what will it depend?

Correct answer: On profit amount

The governing concept is identification of the base specified for a partner’s commission. If the agreement states commission on profit, the amount of commission depends on the relevant profit figure and the stated percentage. For example, at 10% on profit of Rs 80,000, commission would be Rs 8,000 when the basis is profit before commission. If the wording says profit after commission, a different formula is required, so the exact condition must be read carefully. Goods, customer age and bank branch have no accounting connection with this commission. Thus, option A is correct.