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Q.

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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a

Rs.20,000

b

Rs.19,000

c

Rs.38,000

d

Rs.40,000

answer is D.

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Detailed Solution

Commission =60,000×5100=3,000

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

 Kajal's share =57,000×23=38,000

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