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The manager earned a commission of Rs.25,000, which is based on 10% of Net Profit. If sales is Rs.3,50,000 is more than purchases. No opening & closing stock. Find Direct & Indirect expenses?
- a)Rs.75,000
- b)Rs.1,00,000
- c)Rs.2,50,000
- d)Not attainable
Correct answer is option 'B'. Can you explain this answer?
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The manager earned a commission of Rs.25,000, which is based on 10% of...
Calculation of Net Profit
- Net Profit = Sales - Purchases
- Given: Sales is Rs.3,50,000 more than Purchases
- Let's assume Purchases = x
- Therefore, Sales = x + 3,50,000
- Net Profit = (x + 3,50,000) - x
- Net Profit = Rs.3,50,000
Calculation of Manager's Commission
- Commission = 10% of Net Profit
- Commission = 10% of Rs.3,50,000
- Commission = Rs.35,000
Calculation of Indirect Expenses
- Total Expenses = Direct Expenses + Indirect Expenses
- Let's assume Direct Expenses = y
- Therefore, Indirect Expenses = Total Expenses - Direct Expenses
Calculation of Direct Expenses
- Gross Profit = Net Profit - Indirect Expenses - Direct Expenses
- Gross Profit = Rs.3,50,000 - Indirect Expenses - Direct Expenses
- Given: Manager's Commission = Rs.25,000
- Therefore, Gross Profit = Rs.3,50,000 - Indirect Expenses - Direct Expenses - Rs.25,000
- Gross Profit = Rs.3,25,000 - Indirect Expenses - Direct Expenses
Calculation of Total Expenses
- Total Expenses = Gross Profit + Manager's Commission
- Total Expenses = Rs.3,25,000 - Indirect Expenses - Direct Expenses + Rs.25,000
- Total Expenses = Rs.3,50,000 - Indirect Expenses - Direct Expenses
Putting it all together
- Total Expenses = Direct Expenses + Indirect Expenses
- Total Expenses = Rs.3,50,000 - Indirect Expenses - Direct Expenses
- Total Expenses = Rs.3,25,000 - Indirect Expenses - Direct Expenses + Rs.25,000
- Total Expenses = Gross Profit + Manager's Commission
- Gross Profit = Rs.3,50,000 - Indirect Expenses - Direct Expenses - Rs.25,000
- Gross Profit = Rs.3,25,000 - Indirect Expenses - Direct Expenses
- Therefore, Total Expenses = Rs.3,25,000 - Indirect Expenses - Direct Expenses + Rs.25,000
- We know that Manager's Commission is Rs.25,000
- Therefore, Total Expenses - Manager's Commission = Rs.3,25,000 - Indirect Expenses - Direct Expenses
- Total Expenses - Manager's Commission = Gross Profit
- Rs.3,25,000 - Indirect Expenses - Direct Expenses = Rs.3,50,000 - Rs.25,000
- Rs.3,25,000 - Indirect Expenses - Direct Expenses = Rs.3,25,000
- Indirect Expenses + Direct Expenses = Rs.25,000
- We are asked to find the value of Direct and Indirect Expenses
- We know that their sum is Rs.25,000
- Therefore, option B (Rs.1,00,000) is the correct answer as it is the only option whose sum of Direct and Indirect Expenses is Rs.25,000.
- Net Profit = Sales - Purchases
- Given: Sales is Rs.3,50,000 more than Purchases
- Let's assume Purchases = x
- Therefore, Sales = x + 3,50,000
- Net Profit = (x + 3,50,000) - x
- Net Profit = Rs.3,50,000
Calculation of Manager's Commission
- Commission = 10% of Net Profit
- Commission = 10% of Rs.3,50,000
- Commission = Rs.35,000
Calculation of Indirect Expenses
- Total Expenses = Direct Expenses + Indirect Expenses
- Let's assume Direct Expenses = y
- Therefore, Indirect Expenses = Total Expenses - Direct Expenses
Calculation of Direct Expenses
- Gross Profit = Net Profit - Indirect Expenses - Direct Expenses
- Gross Profit = Rs.3,50,000 - Indirect Expenses - Direct Expenses
- Given: Manager's Commission = Rs.25,000
- Therefore, Gross Profit = Rs.3,50,000 - Indirect Expenses - Direct Expenses - Rs.25,000
- Gross Profit = Rs.3,25,000 - Indirect Expenses - Direct Expenses
Calculation of Total Expenses
- Total Expenses = Gross Profit + Manager's Commission
- Total Expenses = Rs.3,25,000 - Indirect Expenses - Direct Expenses + Rs.25,000
- Total Expenses = Rs.3,50,000 - Indirect Expenses - Direct Expenses
Putting it all together
- Total Expenses = Direct Expenses + Indirect Expenses
- Total Expenses = Rs.3,50,000 - Indirect Expenses - Direct Expenses
- Total Expenses = Rs.3,25,000 - Indirect Expenses - Direct Expenses + Rs.25,000
- Total Expenses = Gross Profit + Manager's Commission
- Gross Profit = Rs.3,50,000 - Indirect Expenses - Direct Expenses - Rs.25,000
- Gross Profit = Rs.3,25,000 - Indirect Expenses - Direct Expenses
- Therefore, Total Expenses = Rs.3,25,000 - Indirect Expenses - Direct Expenses + Rs.25,000
- We know that Manager's Commission is Rs.25,000
- Therefore, Total Expenses - Manager's Commission = Rs.3,25,000 - Indirect Expenses - Direct Expenses
- Total Expenses - Manager's Commission = Gross Profit
- Rs.3,25,000 - Indirect Expenses - Direct Expenses = Rs.3,50,000 - Rs.25,000
- Rs.3,25,000 - Indirect Expenses - Direct Expenses = Rs.3,25,000
- Indirect Expenses + Direct Expenses = Rs.25,000
- We are asked to find the value of Direct and Indirect Expenses
- We know that their sum is Rs.25,000
- Therefore, option B (Rs.1,00,000) is the correct answer as it is the only option whose sum of Direct and Indirect Expenses is Rs.25,000.
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The manager earned a commission of Rs.25,000, which is based on 10% of Net Profit. If sales is Rs.3,50,000 is more than purchases. No opening closing stock. Find Direct Indirect expenses?a)Rs.75,000b)Rs.1,00,000c)Rs.2,50,000d)Not attainableCorrect answer is option 'B'. Can you explain this answer?
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The manager earned a commission of Rs.25,000, which is based on 10% of Net Profit. If sales is Rs.3,50,000 is more than purchases. No opening closing stock. Find Direct Indirect expenses?a)Rs.75,000b)Rs.1,00,000c)Rs.2,50,000d)Not attainableCorrect answer is option 'B'. Can you explain this answer? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about The manager earned a commission of Rs.25,000, which is based on 10% of Net Profit. If sales is Rs.3,50,000 is more than purchases. No opening closing stock. Find Direct Indirect expenses?a)Rs.75,000b)Rs.1,00,000c)Rs.2,50,000d)Not attainableCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The manager earned a commission of Rs.25,000, which is based on 10% of Net Profit. If sales is Rs.3,50,000 is more than purchases. No opening closing stock. Find Direct Indirect expenses?a)Rs.75,000b)Rs.1,00,000c)Rs.2,50,000d)Not attainableCorrect answer is option 'B'. Can you explain this answer?.
The manager earned a commission of Rs.25,000, which is based on 10% of Net Profit. If sales is Rs.3,50,000 is more than purchases. No opening closing stock. Find Direct Indirect expenses?a)Rs.75,000b)Rs.1,00,000c)Rs.2,50,000d)Not attainableCorrect answer is option 'B'. Can you explain this answer? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about The manager earned a commission of Rs.25,000, which is based on 10% of Net Profit. If sales is Rs.3,50,000 is more than purchases. No opening closing stock. Find Direct Indirect expenses?a)Rs.75,000b)Rs.1,00,000c)Rs.2,50,000d)Not attainableCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The manager earned a commission of Rs.25,000, which is based on 10% of Net Profit. If sales is Rs.3,50,000 is more than purchases. No opening closing stock. Find Direct Indirect expenses?a)Rs.75,000b)Rs.1,00,000c)Rs.2,50,000d)Not attainableCorrect answer is option 'B'. Can you explain this answer?.
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