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Total profit is Rs 230000. First A receives a salary of Rs 30000. B is then given a 15% commission on the remaining profit. What is B's commission?

Answer and explanation

Correct answer: Rs 30000

By sequential appropriation, deduct A's salary first: 230000 − 30000 = 200000. B's commission is 15% of the remaining profit: 0.15 × 200000 = Rs 30000. Option B (Rs 34500) reflects the common mistake of taking 15% of the total profit (0.15 × 230000), which is incorrect because the salary must be deducted before computing commission. Exam tip: write each appropriation step clearly and apply percentage rates only to the specified base (remaining profit).

Related tags

Sequential AppropriationCommissionSalaryPartnership AccountsProfit DistributionPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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