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A manager gets 5% commissio on net profit after charging such commission, gross profit Rs.58000 and expense of indirect nature other than manager's commission are Rs.16000.commission amount will be a) rs. 2900 b) rs.2000 c) rs.1500 d) rs.2200 answer is b) anyone can explain this question?
Verified Answer
A manager gets 5% commissio on net profit after charging such commissi...
Net Profit for charging commission = 58,000 - 16,000 = 42,000
Manager's Commission = 58,000 x 5/105 = Rs 2,000
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A manager gets 5% commissio on net profit after charging such commissi...
Calculation of Manager's Commission

To calculate the manager's commission, we need to first calculate the net profit.

Net profit = Gross profit - Expenses other than manager's commission
Net profit = Rs. 58000 - Rs. 16000
Net profit = Rs. 42000

Now, we can calculate the manager's commission using the following formula:

Manager's commission = 5% of net profit
Manager's commission = 5% of Rs. 42000
Manager's commission = Rs. 2100

However, we need to remember that the manager's commission is charged on the net profit after deducting the commission itself. So, we need to subtract the commission from the net profit before calculating the commission amount again.

Net profit after deducting commission = Net profit - Manager's commission
Net profit after deducting commission = Rs. 42000 - Rs. 2100
Net profit after deducting commission = Rs. 39900

Again, we can calculate the manager's commission using the same formula:

Manager's commission = 5% of net profit after deducting commission
Manager's commission = 5% of Rs. 39900
Manager's commission = Rs. 1995

So, the correct answer is option B) Rs. 2000.
Community Answer
A manager gets 5% commissio on net profit after charging such commissi...
58000-16000=42000*5/105=2000/-
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A manager gets 5% commissio on net profit after charging such commission, gross profit Rs.58000 and expense of indirect nature other than manager's commission are Rs.16000.commission amount will be a) rs. 2900 b) rs.2000 c) rs.1500 d) rs.2200 answer is b) anyone can explain this question?
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A manager gets 5% commissio on net profit after charging such commission, gross profit Rs.58000 and expense of indirect nature other than manager's commission are Rs.16000.commission amount will be a) rs. 2900 b) rs.2000 c) rs.1500 d) rs.2200 answer is b) anyone can explain this question? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A manager gets 5% commissio on net profit after charging such commission, gross profit Rs.58000 and expense of indirect nature other than manager's commission are Rs.16000.commission amount will be a) rs. 2900 b) rs.2000 c) rs.1500 d) rs.2200 answer is b) anyone can explain this question? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A manager gets 5% commissio on net profit after charging such commission, gross profit Rs.58000 and expense of indirect nature other than manager's commission are Rs.16000.commission amount will be a) rs. 2900 b) rs.2000 c) rs.1500 d) rs.2200 answer is b) anyone can explain this question?.
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