Question
P and Q started a business by investing Rs. 10,000 and
Rs. 15,000 respectively. p also worked as the active manager and for that he is entitled to receive a commission which is equal to 20% of profit. If the difference between the amount received by P and Q at the end of the year is Rs. 500, then find the profit (before commission was given to P) earned by them.Solution
Let the profit earned before commission was given to P be Rs. ‘100x’ Commission of P = 100x × 0.20x = Rs. 20x Ratio of profit shares of P to Q = 10000:15000 = 2:3 Profit earned by P = (100x – 20x) × (2/5) = Rs. 32x Profit earned by Q = (100x – 20x) × (3/5) = Rs. 48x According to the question 20x + 32x – 48x = 500 Or, 4x = 500 So, x = 125 So, required profit = 125 × 100 = Rs. 12,500
Marginal costing technique follows the following basis of classification:
What does the OCEAN model stand for in regards to human personality?
________ determines the extent of centralisation and dispersion of authority in the organisation. It depends on the philosophy and perception of individ...
Which of the following statement is correct in corelation to the term “offer for sale” (OFS)?
RSP Ltd has a net profit margin of 12% and a total asset turnover of 1.2 times and a financial leverage multiplier of 1.2 times. RSP Ltd’s return on ...
Sharath wants to promote one of his employees to lead the new production team. He prefers to promote an employee with a low LPC score. Which attributes ...
Nomination facility in case of lockers is described in
A microfinance loan borrower is identified as a household having annual household income not exceeding …………………….. Household shall mean a...
Which among the following is not made only to existing shareholders?
Which among the following is outside the scope of AS-13?
Relevant for Exams:
