Raj and Seema started a partnership firm on 1st July 2020. They agreed that Seema was entitled to a commission of 10% of the net profit after charging Raj’s salary of ₹ 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 2021 was ₹ 337500. Calculate Seema's commission?
Answer & explanation
Correct answer: option 1
The correct answer is option 1- ₹30000.
Net profit before salary and commission = ₹ 337,500
As partnership is started on 1st July so there are only 3 quarters.
Net Raj’s salary = ₹ 2,500 x 3
= ₹ 7,500
Net profit after Raj’s salary but before Seema’s commission = (337500- 7500)
=₹ 3,30,000
Seema’s commission = 10/110 of ₹ 3,30,000
= ₹ 30,000