Commission in partnership

in a problem they mentioned that "z" is to be given 5% commission of net profit  after deducting interest salary and commission.
for eg.
if net profit is 166000
salary=24000
interest=16000 
how you'll calculate commission for "z"?? the answer is 6000 please help me!!!

Replies (2)

Let the commission be Rs. X
.
Therefore, commission payable to 'Z' is,
.
X = 5% (166000-24000-16000-X)
.
X = 5% (126000-X)
.
100X = 630000-5X
.
105X = 630000
.
X = 630000/105 = Rs. 6000
.
Or, you can simply use this shortcut method to calculate the commission, when commission is paid at a fixed % of net profit after charging such commission:
.
Commission = Net profit before such commission x Rate of commission/100+rate of commission
.
Therefore, Commission payable = 126000*5/105 = Rs. 6000

thanks a lot deepak!!!!!!!

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 28 October 2026
Article assistants

Shyam S Gupta and Company

New Delhi

CA Inter

View Details
Company
Featured 29 October 2026
Accounts Executive

Synergy Keystone

Chennai

B.Com

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details
Company
Featured ARTICLESHIP 28 October 2026
CA- Inter and Articles

N N V Satish & Co.,

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details