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Raj Seema started a partnership firm on 1st july , 2018. They agreed that Seema was entitled to a commission of 10% of the net profit after agreed charging Raj’s salary of Rs. 2,500 per quarter and Seema’s commission. The net profit before charging Raj’s salary and Seema’s commission for the year ended 31st March, 2019 was Rs. 2,27,500. Calculate Seema’s commission. (C.B.S.E. 2019, Comptt.)

SOLUTION

Net Profit before salary and commission = Rs. 2,27,500
Less: Raj’s Salary Rs. 2,500 x 3 = Rs. 7,500
Net Profit after Raj’s Salary but before Seema’s Commission = Rs. 2,20,000
Seema’s Commission = 10 / 110 of 2,20,000 = Rs. 20,000

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