Financial Statements – II · Class 11 · CBSE · Commerce Accountancy
Manager's commission is generally calculated as a percentage of net profit. If the commission is calculated on net profit after charging such commiss…
Practice question from Financial Statements – II (Class 11 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
medium · MCQ · Q-F04AAF
Manager's commission is generally calculated as a percentage of net profit. If the commission is calculated on net profit after charging such commission, the formula used is:
- A.Net Profit before commission (Rate / 100)
- B.Net Profit before commission [Rate / (100 - Rate)]
- C.Net Profit before commission [Rate / (100 + Rate)]Correct answer
- D.Net Profit after commission (Rate / 100)
Solution
When manager's commission is payable on net profit after charging such commission, the formula is Net Profit before commission multiplied by Rate divided by (100 + Rate).
More from Financial Statements – II
- Which of the following items is treated as an Operating Expense in the preparation of the Profit and Loss Account?
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