aravind (student) (132 Points)
13 September 2014in a problem they mentioned that "z" is to be given 5% commission of net profit after deducting interest salary and commission.
for eg.
if net profit is 166000
salary=24000
interest=16000
how you'll calculate commission for "z"?? the answer is 6000 please help me!!!
Deepak Gupta
(CA Student)
(15922 Points)
Replied 13 September 2014
Let the commission be Rs. X
.
Therefore, commission payable to 'Z' is,
.
X = 5% (166000-24000-16000-X)
.
X = 5% (126000-X)
.
100X = 630000-5X
.
105X = 630000
.
X = 630000/105 = Rs. 6000
.
Or, you can simply use this shortcut method to calculate the commission, when commission is paid at a fixed % of net profit after charging such commission:
.
Commission = Net profit before such commission x Rate of commission/100+rate of commission
.
Therefore, Commission payable = 126000*5/105 = Rs. 6000
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