Seetha and Geetha are partners sharing profit and losses in the ratio ...
The answer is to be calculated as follows:
Salary Rs 48000
Profit after salary: Rs 630,000 Commission @ 5% on net profits after charging such commission: Rs 630,000*5/105 = rs 30000 remuneration paid to meetha: Rs 48,000 + Rs 30,000 = Rs 78,000
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Seetha and Geetha are partners sharing profit and losses in the ratio ...
Calculation of Meetha's Total Remuneration:
1. Profit Sharing Ratio:
- Seetha and Geetha share profits in the ratio 4:1.
2. Meetha's Salary and Commission:
- Meetha, the manager, receives a fixed salary of Rs. 4000 per month.
- Meetha also receives a commission of 5% on the net profits after charging the commission.
3. Profit Calculation:
- Total profit for the year before Meetha's salary is Rs. 678,000.
4. Calculating Meetha's Share of Profit:
- Meetha's profit share ratio = 1 / (4+1) = 1 / 5 = 1/5.
- Meetha's share of profit = (1/5) * 678,000 = Rs. 135,600.
5. Calculating Meetha's Commission:
- Net profit after deducting Meetha's salary = 678,000 - (12 * 4000) = Rs. 630,000.
- Meetha's commission on net profit = 5% of Rs. 630,000 = Rs. 31,500.
6. Total Remuneration of Meetha:
- Meetha's total remuneration = Meetha's share of profit + Meetha's commission + Meetha's salary
- Meetha's total remuneration = Rs. 135,600 + Rs. 31,500 + Rs. 48,000 = Rs. 215,100.
Therefore, the correct total remuneration of Meetha is Rs. 78,000.
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