B Com Exam > B Com Questions > How to calculate managerial remuneration for ...
Start Learning for Free
How to calculate managerial remuneration for the following sum to the part-time directors and manager?The net profit as per P&L a/c is ₹6,60,000 for the year ended 31-03-2012 after taking into account the following items:(a) Capital expenditure - ₹1,50,000(b) Subsidy received from government - ₹1,20,000(c) Special depreciation - ₹20,000(d) Multiple Swift allowance - ₹30,000(e) Bonus to foreign technicians - ₹90,000(f) Provision for taxation - ₹8,00,000(g) Compensation paid to an injured workman - ₹20,000(h) Ex-gratia paid to an employee - ₹10,000(i) Loss on sale of fixed assets - ₹20,000(j) Profit on sale of investment - ₹60,000. Should I just calculate the remuneration on the net profit given or find the remuneration after calculating the new net profit by deducting some of the adjustments given in the sum?
?
Most Upvoted Answer
How to calculate managerial remuneration for the following sum to the ...
&L account is $500,000. The remuneration of part-time directors is to be calculated at 10% of the net profit, subject to a maximum of $50,000 each. The manager's remuneration is to be calculated at 5% of the net profit, subject to a maximum of $100,000.
To calculate the remuneration for the part-time directors, we first calculate 10% of the net profit:
10% of $500,000 = $50,000
Since the maximum remuneration for each part-time director is $50,000, we compare the calculated amount with the maximum amount to determine the actual remuneration for each director. In this case, since the calculated amount ($50,000) is equal to the maximum amount, each part-time director will receive $50,000.
To calculate the manager's remuneration, we calculate 5% of the net profit:
5% of $500,000 = $25,000
Since the maximum remuneration for the manager is $100,000, we compare the calculated amount with the maximum amount to determine the actual remuneration for the manager. In this case, since the calculated amount ($25,000) is less than the maximum amount, the manager will receive $25,000 as remuneration.
Therefore, the remuneration for the part-time directors will be $50,000 each, and the manager's remuneration will be $25,000.
To calculate the remuneration for the part-time directors, we first calculate 10% of the net profit:
10% of $500,000 = $50,000
Since the maximum remuneration for each part-time director is $50,000, we compare the calculated amount with the maximum amount to determine the actual remuneration for each director. In this case, since the calculated amount ($50,000) is equal to the maximum amount, each part-time director will receive $50,000.
To calculate the manager's remuneration, we calculate 5% of the net profit:
5% of $500,000 = $25,000
Since the maximum remuneration for the manager is $100,000, we compare the calculated amount with the maximum amount to determine the actual remuneration for the manager. In this case, since the calculated amount ($25,000) is less than the maximum amount, the manager will receive $25,000 as remuneration.
Therefore, the remuneration for the part-time directors will be $50,000 each, and the manager's remuneration will be $25,000.
|
Explore Courses for B Com exam
|
|
Similar B Com Doubts
How to calculate managerial remuneration for the following sum to the part-time directors and manager?The net profit as per P&L a/c is ₹6,60,000 for the year ended 31-03-2012 after taking into account the following items:(a) Capital expenditure - ₹1,50,000(b) Subsidy received from government - ₹1,20,000(c) Special depreciation - ₹20,000(d) Multiple Swift allowance - ₹30,000(e) Bonus to foreign technicians - ₹90,000(f) Provision for taxation - ₹8,00,000(g) Compensation paid to an injured workman - ₹20,000(h) Ex-gratia paid to an employee - ₹10,000(i) Loss on sale of fixed assets - ₹20,000(j) Profit on sale of investment - ₹60,000. Should I just calculate the remuneration on the net profit given or find the remuneration after calculating the new net profit by deducting some of the adjustments given in the sum? Related: Calculation of Managerial Remuneration - Final Accounts, Advanced Corporate Accounting?
Question Description
How to calculate managerial remuneration for the following sum to the part-time directors and manager?The net profit as per P&L a/c is ₹6,60,000 for the year ended 31-03-2012 after taking into account the following items:(a) Capital expenditure - ₹1,50,000(b) Subsidy received from government - ₹1,20,000(c) Special depreciation - ₹20,000(d) Multiple Swift allowance - ₹30,000(e) Bonus to foreign technicians - ₹90,000(f) Provision for taxation - ₹8,00,000(g) Compensation paid to an injured workman - ₹20,000(h) Ex-gratia paid to an employee - ₹10,000(i) Loss on sale of fixed assets - ₹20,000(j) Profit on sale of investment - ₹60,000. Should I just calculate the remuneration on the net profit given or find the remuneration after calculating the new net profit by deducting some of the adjustments given in the sum? Related: Calculation of Managerial Remuneration - Final Accounts, Advanced Corporate Accounting? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about How to calculate managerial remuneration for the following sum to the part-time directors and manager?The net profit as per P&L a/c is ₹6,60,000 for the year ended 31-03-2012 after taking into account the following items:(a) Capital expenditure - ₹1,50,000(b) Subsidy received from government - ₹1,20,000(c) Special depreciation - ₹20,000(d) Multiple Swift allowance - ₹30,000(e) Bonus to foreign technicians - ₹90,000(f) Provision for taxation - ₹8,00,000(g) Compensation paid to an injured workman - ₹20,000(h) Ex-gratia paid to an employee - ₹10,000(i) Loss on sale of fixed assets - ₹20,000(j) Profit on sale of investment - ₹60,000. Should I just calculate the remuneration on the net profit given or find the remuneration after calculating the new net profit by deducting some of the adjustments given in the sum? Related: Calculation of Managerial Remuneration - Final Accounts, Advanced Corporate Accounting? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How to calculate managerial remuneration for the following sum to the part-time directors and manager?The net profit as per P&L a/c is ₹6,60,000 for the year ended 31-03-2012 after taking into account the following items:(a) Capital expenditure - ₹1,50,000(b) Subsidy received from government - ₹1,20,000(c) Special depreciation - ₹20,000(d) Multiple Swift allowance - ₹30,000(e) Bonus to foreign technicians - ₹90,000(f) Provision for taxation - ₹8,00,000(g) Compensation paid to an injured workman - ₹20,000(h) Ex-gratia paid to an employee - ₹10,000(i) Loss on sale of fixed assets - ₹20,000(j) Profit on sale of investment - ₹60,000. Should I just calculate the remuneration on the net profit given or find the remuneration after calculating the new net profit by deducting some of the adjustments given in the sum? Related: Calculation of Managerial Remuneration - Final Accounts, Advanced Corporate Accounting?.
How to calculate managerial remuneration for the following sum to the part-time directors and manager?The net profit as per P&L a/c is ₹6,60,000 for the year ended 31-03-2012 after taking into account the following items:(a) Capital expenditure - ₹1,50,000(b) Subsidy received from government - ₹1,20,000(c) Special depreciation - ₹20,000(d) Multiple Swift allowance - ₹30,000(e) Bonus to foreign technicians - ₹90,000(f) Provision for taxation - ₹8,00,000(g) Compensation paid to an injured workman - ₹20,000(h) Ex-gratia paid to an employee - ₹10,000(i) Loss on sale of fixed assets - ₹20,000(j) Profit on sale of investment - ₹60,000. Should I just calculate the remuneration on the net profit given or find the remuneration after calculating the new net profit by deducting some of the adjustments given in the sum? Related: Calculation of Managerial Remuneration - Final Accounts, Advanced Corporate Accounting? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about How to calculate managerial remuneration for the following sum to the part-time directors and manager?The net profit as per P&L a/c is ₹6,60,000 for the year ended 31-03-2012 after taking into account the following items:(a) Capital expenditure - ₹1,50,000(b) Subsidy received from government - ₹1,20,000(c) Special depreciation - ₹20,000(d) Multiple Swift allowance - ₹30,000(e) Bonus to foreign technicians - ₹90,000(f) Provision for taxation - ₹8,00,000(g) Compensation paid to an injured workman - ₹20,000(h) Ex-gratia paid to an employee - ₹10,000(i) Loss on sale of fixed assets - ₹20,000(j) Profit on sale of investment - ₹60,000. Should I just calculate the remuneration on the net profit given or find the remuneration after calculating the new net profit by deducting some of the adjustments given in the sum? Related: Calculation of Managerial Remuneration - Final Accounts, Advanced Corporate Accounting? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How to calculate managerial remuneration for the following sum to the part-time directors and manager?The net profit as per P&L a/c is ₹6,60,000 for the year ended 31-03-2012 after taking into account the following items:(a) Capital expenditure - ₹1,50,000(b) Subsidy received from government - ₹1,20,000(c) Special depreciation - ₹20,000(d) Multiple Swift allowance - ₹30,000(e) Bonus to foreign technicians - ₹90,000(f) Provision for taxation - ₹8,00,000(g) Compensation paid to an injured workman - ₹20,000(h) Ex-gratia paid to an employee - ₹10,000(i) Loss on sale of fixed assets - ₹20,000(j) Profit on sale of investment - ₹60,000. Should I just calculate the remuneration on the net profit given or find the remuneration after calculating the new net profit by deducting some of the adjustments given in the sum? Related: Calculation of Managerial Remuneration - Final Accounts, Advanced Corporate Accounting?.
Solutions for How to calculate managerial remuneration for the following sum to the part-time directors and manager?The net profit as per P&L a/c is ₹6,60,000 for the year ended 31-03-2012 after taking into account the following items:(a) Capital expenditure - ₹1,50,000(b) Subsidy received from government - ₹1,20,000(c) Special depreciation - ₹20,000(d) Multiple Swift allowance - ₹30,000(e) Bonus to foreign technicians - ₹90,000(f) Provision for taxation - ₹8,00,000(g) Compensation paid to an injured workman - ₹20,000(h) Ex-gratia paid to an employee - ₹10,000(i) Loss on sale of fixed assets - ₹20,000(j) Profit on sale of investment - ₹60,000. Should I just calculate the remuneration on the net profit given or find the remuneration after calculating the new net profit by deducting some of the adjustments given in the sum? Related: Calculation of Managerial Remuneration - Final Accounts, Advanced Corporate Accounting? in English & in Hindi are available as part of our courses for B Com.
Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free.
Here you can find the meaning of How to calculate managerial remuneration for the following sum to the part-time directors and manager?The net profit as per P&L a/c is ₹6,60,000 for the year ended 31-03-2012 after taking into account the following items:(a) Capital expenditure - ₹1,50,000(b) Subsidy received from government - ₹1,20,000(c) Special depreciation - ₹20,000(d) Multiple Swift allowance - ₹30,000(e) Bonus to foreign technicians - ₹90,000(f) Provision for taxation - ₹8,00,000(g) Compensation paid to an injured workman - ₹20,000(h) Ex-gratia paid to an employee - ₹10,000(i) Loss on sale of fixed assets - ₹20,000(j) Profit on sale of investment - ₹60,000. Should I just calculate the remuneration on the net profit given or find the remuneration after calculating the new net profit by deducting some of the adjustments given in the sum? Related: Calculation of Managerial Remuneration - Final Accounts, Advanced Corporate Accounting? defined & explained in the simplest way possible. Besides giving the explanation of
How to calculate managerial remuneration for the following sum to the part-time directors and manager?The net profit as per P&L a/c is ₹6,60,000 for the year ended 31-03-2012 after taking into account the following items:(a) Capital expenditure - ₹1,50,000(b) Subsidy received from government - ₹1,20,000(c) Special depreciation - ₹20,000(d) Multiple Swift allowance - ₹30,000(e) Bonus to foreign technicians - ₹90,000(f) Provision for taxation - ₹8,00,000(g) Compensation paid to an injured workman - ₹20,000(h) Ex-gratia paid to an employee - ₹10,000(i) Loss on sale of fixed assets - ₹20,000(j) Profit on sale of investment - ₹60,000. Should I just calculate the remuneration on the net profit given or find the remuneration after calculating the new net profit by deducting some of the adjustments given in the sum? Related: Calculation of Managerial Remuneration - Final Accounts, Advanced Corporate Accounting?, a detailed solution for How to calculate managerial remuneration for the following sum to the part-time directors and manager?The net profit as per P&L a/c is ₹6,60,000 for the year ended 31-03-2012 after taking into account the following items:(a) Capital expenditure - ₹1,50,000(b) Subsidy received from government - ₹1,20,000(c) Special depreciation - ₹20,000(d) Multiple Swift allowance - ₹30,000(e) Bonus to foreign technicians - ₹90,000(f) Provision for taxation - ₹8,00,000(g) Compensation paid to an injured workman - ₹20,000(h) Ex-gratia paid to an employee - ₹10,000(i) Loss on sale of fixed assets - ₹20,000(j) Profit on sale of investment - ₹60,000. Should I just calculate the remuneration on the net profit given or find the remuneration after calculating the new net profit by deducting some of the adjustments given in the sum? Related: Calculation of Managerial Remuneration - Final Accounts, Advanced Corporate Accounting? has been provided alongside types of How to calculate managerial remuneration for the following sum to the part-time directors and manager?The net profit as per P&L a/c is ₹6,60,000 for the year ended 31-03-2012 after taking into account the following items:(a) Capital expenditure - ₹1,50,000(b) Subsidy received from government - ₹1,20,000(c) Special depreciation - ₹20,000(d) Multiple Swift allowance - ₹30,000(e) Bonus to foreign technicians - ₹90,000(f) Provision for taxation - ₹8,00,000(g) Compensation paid to an injured workman - ₹20,000(h) Ex-gratia paid to an employee - ₹10,000(i) Loss on sale of fixed assets - ₹20,000(j) Profit on sale of investment - ₹60,000. Should I just calculate the remuneration on the net profit given or find the remuneration after calculating the new net profit by deducting some of the adjustments given in the sum? Related: Calculation of Managerial Remuneration - Final Accounts, Advanced Corporate Accounting? theory, EduRev gives you an
ample number of questions to practice How to calculate managerial remuneration for the following sum to the part-time directors and manager?The net profit as per P&L a/c is ₹6,60,000 for the year ended 31-03-2012 after taking into account the following items:(a) Capital expenditure - ₹1,50,000(b) Subsidy received from government - ₹1,20,000(c) Special depreciation - ₹20,000(d) Multiple Swift allowance - ₹30,000(e) Bonus to foreign technicians - ₹90,000(f) Provision for taxation - ₹8,00,000(g) Compensation paid to an injured workman - ₹20,000(h) Ex-gratia paid to an employee - ₹10,000(i) Loss on sale of fixed assets - ₹20,000(j) Profit on sale of investment - ₹60,000. Should I just calculate the remuneration on the net profit given or find the remuneration after calculating the new net profit by deducting some of the adjustments given in the sum? Related: Calculation of Managerial Remuneration - Final Accounts, Advanced Corporate Accounting? tests, examples and also practice B Com tests.
|
|
Explore Courses for B Com exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup