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General manager gets 10% commission on net profit after charging such commission. Gross profit is rupees 70000 and general expenses other than manager's commission are 12000 . The commission amount will be :- Class 11 Accounts Pls give an accurate answer?
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General manager gets 10% commission on net profit after charging such ...
Calculation of Commission Amount:
Given data:
- Gross profit = Rs. 70000
- General expenses (excluding manager's commission) = Rs. 12000
- Commission rate = 10%
Step 1: Calculate the net profit
- Net profit = Gross profit - General expenses
- Net profit = Rs. 70000 - Rs. 12000 = Rs. 58000
Step 2: Calculate the commission amount
- Commission amount = 10% of net profit
- Commission amount = 10/100 x Rs. 58000
- Commission amount = Rs. 5800
Therefore, the commission amount for the general manager will be Rs. 5800.
Explanation:
The general manager is entitled to receive a commission on the net profit after deducting all expenses, including the commission amount. In this case, the commission rate is 10%, which means that the manager will receive 10% of the net profit as commission.
To calculate the net profit, we need to subtract the general expenses (excluding manager's commission) from the gross profit. Once we have the net profit, we can calculate the commission amount by multiplying it with the commission rate.
In this case, the net profit is Rs. 58000, and the commission rate is 10%. Therefore, the commission amount will be Rs. 5800.
It is important to note that the commission amount is calculated on the net profit after deducting all expenses, including the general expenses and the commission amount itself. This ensures that the manager's commission is based on the actual profit earned by the business.
Given data:
- Gross profit = Rs. 70000
- General expenses (excluding manager's commission) = Rs. 12000
- Commission rate = 10%
Step 1: Calculate the net profit
- Net profit = Gross profit - General expenses
- Net profit = Rs. 70000 - Rs. 12000 = Rs. 58000
Step 2: Calculate the commission amount
- Commission amount = 10% of net profit
- Commission amount = 10/100 x Rs. 58000
- Commission amount = Rs. 5800
Therefore, the commission amount for the general manager will be Rs. 5800.
Explanation:
The general manager is entitled to receive a commission on the net profit after deducting all expenses, including the commission amount. In this case, the commission rate is 10%, which means that the manager will receive 10% of the net profit as commission.
To calculate the net profit, we need to subtract the general expenses (excluding manager's commission) from the gross profit. Once we have the net profit, we can calculate the commission amount by multiplying it with the commission rate.
In this case, the net profit is Rs. 58000, and the commission rate is 10%. Therefore, the commission amount will be Rs. 5800.
It is important to note that the commission amount is calculated on the net profit after deducting all expenses, including the general expenses and the commission amount itself. This ensures that the manager's commission is based on the actual profit earned by the business.
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General manager gets 10% commission on net profit after charging such commission. Gross profit is rupees 70000 and general expenses other than manager's commission are 12000 . The commission amount will be :- Class 11 Accounts Pls give an accurate answer?
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General manager gets 10% commission on net profit after charging such commission. Gross profit is rupees 70000 and general expenses other than manager's commission are 12000 . The commission amount will be :- Class 11 Accounts Pls give an accurate answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about General manager gets 10% commission on net profit after charging such commission. Gross profit is rupees 70000 and general expenses other than manager's commission are 12000 . The commission amount will be :- Class 11 Accounts Pls give an accurate answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for General manager gets 10% commission on net profit after charging such commission. Gross profit is rupees 70000 and general expenses other than manager's commission are 12000 . The commission amount will be :- Class 11 Accounts Pls give an accurate answer?.
General manager gets 10% commission on net profit after charging such commission. Gross profit is rupees 70000 and general expenses other than manager's commission are 12000 . The commission amount will be :- Class 11 Accounts Pls give an accurate answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about General manager gets 10% commission on net profit after charging such commission. Gross profit is rupees 70000 and general expenses other than manager's commission are 12000 . The commission amount will be :- Class 11 Accounts Pls give an accurate answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for General manager gets 10% commission on net profit after charging such commission. Gross profit is rupees 70000 and general expenses other than manager's commission are 12000 . The commission amount will be :- Class 11 Accounts Pls give an accurate answer?.
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