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General Manager gets 6% commission on net profit after charging such commission. Gross profit Rs.60,000 and other indirect expenses other than manager's commission are Rs.7,000. Commission amount will be
  • a)
    Rs.3,000
  • b)
    Rs.3,396
  • c)
    Rs.3,500
  • d)
    None of the above
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
General Manager gets 6% commission on net profit after charging such c...
Calculation of Net Profit

- Gross Profit = Rs.60,000
- Indirect Expenses (excluding manager's commission) = Rs.7,000
- Therefore, Net Profit = Gross Profit - Indirect Expenses = Rs.53,000

Calculation of Commission

- Commission % = 6%
- Commission on Net Profit = 6% of Rs.53,000 = Rs.3,180

Calculation of Actual Commission after Charging Commission

- Commission % = 6%
- Commission on Net Profit = 6% of Rs.53,000 = Rs.3,180
- Commission after Charging Commission = Commission on Net Profit - Commission on Net Profit x Commission % = Rs.3,180 - Rs.190.8 = Rs.2,989.2 (rounded off to Rs.3,000)

Therefore, the correct answer is option 'A' (Rs.3,000).
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Community Answer
General Manager gets 6% commission on net profit after charging such c...
Gross profit-indirect expenses=net profit 60000-7000=53000 commission=53000*6/106=3000
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General Manager gets 6% commission on net profit after charging such commission. Gross profit Rs.60,000 and other indirect expenses other than manager's commission are Rs.7,000. Commission amount will bea)Rs.3,000b)Rs.3,396c)Rs.3,500d)None of the aboveCorrect answer is option 'A'. Can you explain this answer?
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General Manager gets 6% commission on net profit after charging such commission. Gross profit Rs.60,000 and other indirect expenses other than manager's commission are Rs.7,000. Commission amount will bea)Rs.3,000b)Rs.3,396c)Rs.3,500d)None of the aboveCorrect answer is option 'A'. Can you explain this answer? 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 General Manager gets 6% commission on net profit after charging such commission. Gross profit Rs.60,000 and other indirect expenses other than manager's commission are Rs.7,000. Commission amount will bea)Rs.3,000b)Rs.3,396c)Rs.3,500d)None of the aboveCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for General Manager gets 6% commission on net profit after charging such commission. Gross profit Rs.60,000 and other indirect expenses other than manager's commission are Rs.7,000. Commission amount will bea)Rs.3,000b)Rs.3,396c)Rs.3,500d)None of the aboveCorrect answer is option 'A'. Can you explain this answer?.
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