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Sudha and Kajal are partners in the ratio of 1:2. Before profit distribution, Sudha is entitled to 5% commission of the net profit (before charging such commission). Before charging commission firm’s profit was Rs.60,000/-. Kajal’s share in profit will be

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Rs.40,000

Rs.19,000

Rs.20,000

Rs.38,000

answer is D.

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Detailed Solution

Commission $= 60, 000 \times \frac{5}{100} = 3, 000$

Profit after commission 60,000 – 3,000 = 57,000

$Kajal's share = 57, 000 \times \frac{2}{3} = 38, 000$

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