P and q are partners sharing profits in the ratio 1:2 R was a manager who received salary of - Accountancy - Accounting for Partnership Basic Concepts

Question

P and q are partners sharing profits in the ratio 1:2 R was a
manager who received salary of rs 10000 pm in addition to
commission of 10% on ner profits after changing such commission
Total remuneration to r amounted to rs 180000 Profit for the year
before charging salary and commission was ?

Shruti Mishra · Accepted Answer

Dear Student,
R's Commission = 180,000 - 120,000(salary) = 60,000
Net Profit x (R/100+R) = Manager Commission after charging such
commission
Net Profit = 60,000 x (110/10)
Net Profit = 60,000 x 11 = 6,60,000

Thanks

P and q are partners sharing profits in the ratio 1:2. R was a manager who received salary of rs 10000 pm in addition to commission of 10% on ner profits after changing such commission. Total remuneration to r amounted to rs 180000. Profit for the year before charging salary and commission was ?