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 Net profit before charging manager's commission is Rs.49,500 and the manager is to be allowed a commission of 10% on the profit after charging such commission. Commission amount will be___
  • a)
    Rs.5,000
  • b)
    Rs.4,950
  • c)
    Rs.4,500
  • d)
    None
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Net profit before charging manager's commission is Rs.49,500 and t...
Calculation of Manager's Commission

Given:
Net profit before charging manager's commission = Rs. 49,500
Manager's commission = 10%

Step 1: Calculate the profit after charging the manager's commission
Profit after charging the manager's commission = Net profit before charging manager's commission - Manager's commission on net profit before charging the commission
= Rs. 49,500 - (10/100) x Rs. 49,500
= Rs. 49,500 - Rs. 4,950
= Rs. 44,550

Step 2: Calculate the manager's commission on the profit after charging the commission
Manager's commission on profit after charging the commission = 10% of (Profit after charging the commission)
= 10% of Rs. 44,550
= Rs. 4,455

Therefore, the commission amount that the manager will receive is Rs. 4,500 (rounded off to the nearest rupee). The correct answer is option C.
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Community Answer
Net profit before charging manager's commission is Rs.49,500 and t...
Let the commission amount be Rs.x 
according to question,
commission is given after deducting commission amount from net profit before charging manager's commission so it wiil be like this,
  x=10% of (49500-x)
or, x= 10/100 *(49500-x)
or, 100x=10(49500-x)
or, 100x=495000-10x
or, 100x+10x= 495000
or, 110x=495000
or, x=495000/110
or, x= Rs.4500/- 


alternatively,
 
commission amount =49500*10/110
                                 = Rs. 4500/-

hence the correct answer is Rs.4500/-
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Net profit before charging manager's commission is Rs.49,500 and the manager is to be allowed a commission of 10% on the profit after charging such commission. Commission amount will be___a)Rs.5,000b)Rs.4,950c)Rs.4,500d)NoneCorrect answer is option 'C'. Can you explain this answer?
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Net profit before charging manager's commission is Rs.49,500 and the manager is to be allowed a commission of 10% on the profit after charging such commission. Commission amount will be___a)Rs.5,000b)Rs.4,950c)Rs.4,500d)NoneCorrect answer is option 'C'. 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 Net profit before charging manager's commission is Rs.49,500 and the manager is to be allowed a commission of 10% on the profit after charging such commission. Commission amount will be___a)Rs.5,000b)Rs.4,950c)Rs.4,500d)NoneCorrect answer is option 'C'. 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 Net profit before charging manager's commission is Rs.49,500 and the manager is to be allowed a commission of 10% on the profit after charging such commission. Commission amount will be___a)Rs.5,000b)Rs.4,950c)Rs.4,500d)NoneCorrect answer is option 'C'. Can you explain this answer?.
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