Read the following passage and answer the questions given below.

Ram and Shyam are partners sharing profits in the ratio of 3:2. Their capitals as on 31st March 2022 were ₹5,00,000 and ₹3,00,000 respectively. There is no partnership deed but both partners agreed for the interest on capital @ 5% p.a. and salary to Shyam of ₹25,000 annually. Shyam salary is debited to profit and loss account. On preparing accounts it was found that Interest on capital is omitted and manager's commission was not given which is 5% of the net profit before charging such commission. Profits after Shyam salary was ₹2,49,300.

What will be the net profit of the firm?

₹2,60,585

The correct answer is option 2- ₹2,60,585.

Profit for the calculating manager's commission = 2,49,300(profit) + 25,000(partner salary)
                                                                     = ₹2,74,300

Manager's commission = 2,74,300 X 5/100
                                 = ₹13,715

Net profit of the firm = 2,49,300 + 25,000 - 13,715
                              = ₹2,60,585

* Partner salary is provided in profit and loss appropriation account not in profit and loss account.