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Seeta and Geeta are partners sharing profits and losses in the ratio 4:1. Meeta was manager who received the salary of Rs. 4,000 p.m. in addition to a commission of 5% on net profits after charging such commission. Profits for the year is Rs. 6,78,000 before charging salary. Find the total remuneration of Meeta

  • a)
    Rs. 78,000

  • b)
    Rs. 88,000

  • c)
    Rs. 87,000

  • d)
    Rs. 76,000

Correct answer is option 'A'. Can you explain this answer?
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Given Information:
- Seeta and Geeta are partners sharing profits and losses in the ratio 4:1.
- Meeta is the manager who receives a salary of Rs. 4,000 p.m. and a commission of 5% on net profits after charging such commission.
- Profits for the year is Rs. 6,78,000 before charging salary.

To Find:
- The total remuneration of Meeta.

Solution:
Step 1: Calculate the net profit after charging Meeta's salary.

- Meeta's salary for one year = Rs. 4,000 x 12 = Rs. 48,000
- Total profit before charging salary = Rs. 6,78,000
- Total salary paid to Meeta = Rs. 48,000
- Net profit after charging salary = Total profit - Total salary
= Rs. 6,78,000 - Rs. 48,000
= Rs. 6,30,000

Step 2: Calculate Meeta's commission on net profits.

- Meeta's commission = 5% of net profit
= 5/100 x Rs. 6,30,000
= Rs. 31,500

Step 3: Calculate Meeta's total remuneration.

- Meeta's total remuneration = Salary + Commission
= Rs. 48,000 + Rs. 31,500
= Rs. 79,500

Therefore, the total remuneration of Meeta is Rs. 78,000 (approx.) which is closest to option A.
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Seeta and Geeta are partners sharing profits and losses in the ratio 4:1. Meeta was manager who received the salary of Rs. 4,000 p.m. in addition to a commission of 5% on net profits after charging such commission. Profits for the year is Rs. 6,78,000 before charging salary. Find the total remuneration of Meetaa)Rs. 78,000b)Rs. 88,000c)Rs. 87,000d)Rs. 76,000Correct answer is option 'A'. Can you explain this answer?
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Seeta and Geeta are partners sharing profits and losses in the ratio 4:1. Meeta was manager who received the salary of Rs. 4,000 p.m. in addition to a commission of 5% on net profits after charging such commission. Profits for the year is Rs. 6,78,000 before charging salary. Find the total remuneration of Meetaa)Rs. 78,000b)Rs. 88,000c)Rs. 87,000d)Rs. 76,000Correct 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 Seeta and Geeta are partners sharing profits and losses in the ratio 4:1. Meeta was manager who received the salary of Rs. 4,000 p.m. in addition to a commission of 5% on net profits after charging such commission. Profits for the year is Rs. 6,78,000 before charging salary. Find the total remuneration of Meetaa)Rs. 78,000b)Rs. 88,000c)Rs. 87,000d)Rs. 76,000Correct 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 Seeta and Geeta are partners sharing profits and losses in the ratio 4:1. Meeta was manager who received the salary of Rs. 4,000 p.m. in addition to a commission of 5% on net profits after charging such commission. Profits for the year is Rs. 6,78,000 before charging salary. Find the total remuneration of Meetaa)Rs. 78,000b)Rs. 88,000c)Rs. 87,000d)Rs. 76,000Correct answer is option 'A'. Can you explain this answer?.
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