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A receives a commission of two percent on sales. If the sales amount is Rs 4,00,000, how much commission will A receive?

Answer and explanation

Correct answer: Rs 8,000

Commission is calculated on the sales amount and does not depend on profit. Here commission = 2% of Rs 4,00,000 = \(400000\times\dfrac{2}{100}=8000\). Therefore the correct answer is Rs 8,000. Closest distractors arise from using 1% (Rs 4,000), 3% (Rs 12,000) or 5% (Rs 20,000) by mistake. Exam tip: convert the percentage to a decimal or use \(\frac{percentage}{100}\) to multiply quickly and avoid errors.

Related tags

Sales CommissionPartnership AccountsProfit DistributionNumericalPartner CommissionPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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