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A and B share profit in the ratio 2:1. Net profit is Rs 72,000. A's salary is Rs 12,000 and B's commission is Rs 6,000. What is B's share of the remaining profit?

Answer and explanation

Correct answer: Eighteen thousand rupees

The governing concept is that specifically provided salary and commission are appropriated first, and only the balance is divided in the agreed profit-sharing ratio. Start with net profit of Rs 72,000. Deduct A’s salary of Rs 12,000 and B’s commission of Rs 6,000: remaining profit = Rs 72,000 − Rs 12,000 − Rs 6,000 = Rs 54,000. A and B share this balance in the ratio 2:1, so B receives one part out of three parts. B’s share = Rs 54,000 × 1/3 = Rs 18,000. Therefore option A is correct. Option D is only the commission, option B is two-thirds of the balance, and option C does not follow the stated ratio.

Related tags

Salary And CommissionProfit DistributionSharing RatioPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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