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vidya (Querist)
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30 November 2013 Seetha and geetha are partners sharing profits and losses in the ratio 4:1.Meeta was manager who received the salary of 4000 p.m.in addition to a commission of 5% on net profits after charging such commission.Profit for the year is 678000 before charging salary.Find total remuneration of meetha?

a)78000 b)88000 c)87000 d)76000

The answer given in the ICAI material is 78000. Can you anyone help me for this calculation.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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30 November 2013 Dera Vidya,

the answer is to be calculated as follows:

Salary Rs 48000

Profit after salary: Rs 630,000

Commission @ 5% on net profits after charging such commission: Rs 630,000*5/105

= rs 30000

remuneration paid to meetha: Rs 48,000 + Rs 30,000 = Rs 78,000

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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30 November 2013 Salary = Rs 4,000 x 12 months = 48,000

(Profit (excl.salary)=Rs 6,30,000
(Rs 6,78,000-48,000)

(+)
Commision (Rs 6,30,000 x 5/105) 30,000

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Rs 78,000
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