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A receives a salary of Rs 42,000 and B receives a commission of 12% on the profit remaining after salary. Profit before salary is Rs 242,000. What is B's commission?

Answer and explanation

Correct answer: Rs 24000

Subtract salary first: profit before salary is Rs 242,000 and salary is Rs 42,000, so remaining profit = \(242000-42000=200000\). B's commission = 12% of remaining profit = \(0.12\times200000=24000\). Therefore Rs 24,000 is correct. Closest distractor Rs 29,040 is 12% of the profit before salary (a common mistake). Exam tip: always deduct salaries or guaranteed payments before computing commission on remaining profit.

Related tags

SalaryCommissionProfit DistributionPartnership AccountsAccountingPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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