IndigoLearn

Forums

Back

Final accounts of Sole proprietorship

Accountancy

Commission payable to manager on Net profit (Before charging such commission) If any body can explain. Other than module

Bhavesh Kumar

CA Foundation

★ 425

15-Oct-23 12:10

345

Answers (2)

Best Answer

Say Profit before commission is 100 Commission is 10% after charging commission. So Commission = 10% * (100 - Commission) Commission = 10 - 0.1 * Commission 1.1 Commission = 10 Commission = 10/1.1 = 9.09 Cross chec Profit. = 100 Commission = 9.09 Profit after commission = 90.91

CA Suraj Lakhotia

Admin

17-Oct-23 15:55

Correction - commission to be charged on Net profit (After) charging such commission..

Thread Starter

Bhavesh Kumar

CA Foundation

★ 425

15-Oct-23 12:11