Calculate the amount of A's Commission from the following items:

Net profit before commission Rs. 1,65,000 and Mr. A is entitled for a commission of 10% of net profit after charging such commission.

Rs. 15,000

The correct answer is Option (2) → Rs. 15,000

Commission = Net profit before commission x Rate of commission/ (100 + rate of commission)

Net profit before commission = Rs. 1,65,000
Commission rate = 10%

Commission = 165000 x 10/(100+10)
                  = 1650000/110
                  = 15000