Question

A, B and C are partners sharing profits and losses in the ratio of 2 : 2 : 1 respectively. A is entitled to a commission of 10% on the net profit. Net profit for the year is Rs. 1,10,000. Determine the amount of commission payable to A.

Answer 1

Net profit before charging commission = 1,10,000 

Commission to A = 10% of on net profit