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A and B share profits equally. Total profit is ₹60,000. A is paid a salary of ₹10,000 and B receives a commission equal to 10% of the profit after deducting the salary. What is the amount of B's commission?

Answer and explanation

Correct answer: Five thousand rupees

Subtract A's salary from total profit first: ₹60,000 − ₹10,000 = ₹50,000. The question states B's commission is 10% of the profit after salary, so commission = 10% of ₹50,000 = ₹5,000. Why other options are wrong: ₹6,000 would be 10% of ₹60,000 (ignoring the salary deduction). Exam tip: always deduct fixed appropriations (salaries, guarantees) before calculating percentage-based appropriations like commission, and check the stated base for the percentage.

Related tags

Partnership AccountsProfit DistributionCommission CalculationAppropriationsNumericalPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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