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A and B are patners in a firm. Ais eatitled to a salary of ₹15, 000 p.m and a commission of 10% of net profit before charging any commission. B is entitled toa commission of 10% of net profit after charging his commission. Net profit for year ended 31st march 2018 was ₹4, 40,000. You are required to show the distribution of profit?
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A and B are patners in a firm. Ais eatitled to a salary of ₹15, 000 p....
Distribution of Profit between A and B


Salary and Commission for A


  • A is entitled to a salary of ₹15,000 per month

  • A is also entitled to a commission of 10% of net profit before charging any commission

  • Calculation of commission for A: 10% of ₹4,40,000 = ₹44,000



Commission for B


  • B is entitled to a commission of 10% of net profit after charging his commission

  • Calculation of commission for B: 10% of (₹4,40,000 - ₹44,000) = ₹39,600



Total Earnings for A and B


  • Total earnings for A: ₹15,000 (salary) + ₹44,000 (commission) = ₹59,000

  • Total earnings for B: ₹39,600 (commission)



Conclusion


  • A's total earnings are ₹59,000

  • B's total earnings are ₹39,600

  • Distribution of profit between A and B is as follows:

    • A receives ₹15,000 (salary) + ₹44,000 (commission) = ₹59,000

    • B receives ₹39,600 (commission)



Community Answer
A and B are patners in a firm. Ais eatitled to a salary of ₹15, 000 p....
86000 is A's capital account
And 86000 is B's capital account
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A and B are patners in a firm. Ais eatitled to a salary of ₹15, 000 p.m and a commission of 10% of net profit before charging any commission. B is entitled toa commission of 10% of net profit after charging his commission. Net profit for year ended 31st march 2018 was ₹4, 40,000. You are required to show the distribution of profit?
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A and B are patners in a firm. Ais eatitled to a salary of ₹15, 000 p.m and a commission of 10% of net profit before charging any commission. B is entitled toa commission of 10% of net profit after charging his commission. Net profit for year ended 31st march 2018 was ₹4, 40,000. You are required to show the distribution of profit? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A and B are patners in a firm. Ais eatitled to a salary of ₹15, 000 p.m and a commission of 10% of net profit before charging any commission. B is entitled toa commission of 10% of net profit after charging his commission. Net profit for year ended 31st march 2018 was ₹4, 40,000. You are required to show the distribution of profit? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are patners in a firm. Ais eatitled to a salary of ₹15, 000 p.m and a commission of 10% of net profit before charging any commission. B is entitled toa commission of 10% of net profit after charging his commission. Net profit for year ended 31st march 2018 was ₹4, 40,000. You are required to show the distribution of profit?.
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