CA Foundation Exam > CA Foundation Questions > General Manager gets 6% commission on net pro...
Start Learning for Free
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.3,000b)
Rs.3,396c)
Rs.3,500 d)
None of the aboveCorrect answer is option 'A'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
General Manager gets 6% commission on net profit after charging such c...
Calculation of General Manager's Commission:
Gross Profit = Rs.60,000
Indirect Expenses (Other than Manager's Commission) = Rs.7,000
Net Profit = Gross Profit - Indirect Expenses = Rs.53,000
Commission on Net Profit = 6%
Commission Amount = 6% of Rs.53,000 = Rs.3,180
However, the commission is charged on the net profit after deducting the commission amount. Hence, the commission charged will be:
Commission Charged = 6% of (Rs.53,000 - Rs.3,180) = Rs.3,000
Therefore, the correct option is A) Rs.3,000.
Explanation:
The General Manager is entitled to receive a commission on the net profit earned by the company after deducting all the expenses. In this case, the gross profit earned by the company is Rs.60,000, and the indirect expenses other than the Manager's commission are Rs.7,000. Hence, the net profit earned by the company is Rs.53,000.
The General Manager's commission is 6% of the net profit earned by the company. However, the commission is charged on the net profit after deducting the commission amount. Hence, the commission charged will be 6% of (Rs.53,000 - Rs.3,180) = Rs.3,000.
Therefore, the correct option is A) Rs.3,000.
Gross Profit = Rs.60,000
Indirect Expenses (Other than Manager's Commission) = Rs.7,000
Net Profit = Gross Profit - Indirect Expenses = Rs.53,000
Commission on Net Profit = 6%
Commission Amount = 6% of Rs.53,000 = Rs.3,180
However, the commission is charged on the net profit after deducting the commission amount. Hence, the commission charged will be:
Commission Charged = 6% of (Rs.53,000 - Rs.3,180) = Rs.3,000
Therefore, the correct option is A) Rs.3,000.
Explanation:
The General Manager is entitled to receive a commission on the net profit earned by the company after deducting all the expenses. In this case, the gross profit earned by the company is Rs.60,000, and the indirect expenses other than the Manager's commission are Rs.7,000. Hence, the net profit earned by the company is Rs.53,000.
The General Manager's commission is 6% of the net profit earned by the company. However, the commission is charged on the net profit after deducting the commission amount. Hence, the commission charged will be 6% of (Rs.53,000 - Rs.3,180) = Rs.3,000.
Therefore, the correct option is A) Rs.3,000.
Free Test
FREE
| Start Free Test |
Community Answer
General Manager gets 6% commission on net profit after charging such c...
Gross Profit=60000-7000=53000
Manager's commission after charging such commission=53000x6/106=3000
Manager's commission after charging such commission=53000x6/106=3000
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
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?
Question Description
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?.
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?.
Solutions 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? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of 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? defined & explained in the simplest way possible. Besides giving the explanation of
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?, a detailed solution 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? has been provided alongside types of 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? theory, EduRev gives you an
ample number of questions to practice 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? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup