" In a partnership firm a partner Ram is entitled to get a commission of 10%
on profits after deduction of interest on capital and such commissions. Interest on capital and Net Profit were of Rs 17,000 and 50,000 respectively.
Commission paid to Ram is - "
Answer & explanation
Correct answer: option 1
"Commission to Ram = Net profit after interest * Rate /100+Rate
= (50,000 - 17,000) * 10 / 110
= 33,000 * 10 / 110 = 3,000"
= (50,000 - 17,000) * 10 / 110
= 33,000 * 10 / 110 = 3,000"