Question

Calculate the amount of Manager’s Commission:

• A. 5500
• B. 5000
• C. 5050
• D. 2640
• A. 3000
• B. 2400
• C. 1800
• D. No Interest will be allowed due to insufficient profits
• A. 55000
• B. 50000
• C. 26400
• D. 49500
• A. 10560
• B. 5280
• C. 5060
• D. 10120
• A. Indian Partnership Act, 1932
• B. Indian Contract Act, 1872
• C. Companies Act, 2013
• D. Companies Act, 1956

Answer 1

The Correct Option is A

1. Net Profit Before Manager’s Commission: 55,000
2. Salary to Amit:- Monthly Salary = 1,000- Annual Salary = 1,000 × 12 = 12,000
3. Manager’s Commission Calculation: - Let \( x \) be the manager’s commission. - Profit after deducting the manager’s commission: \[ \text{Net Profit after Manager’s Commission} = 55,000 - x \] - The manager’s commission is 10\% of the net profit after charging the commission: \[ x = 10\% \times (55,000 - x) \] - Rearranging the equation: \[ x = \frac{10}{100} (55,000 - x) \] \[ x = 5,500 - 0.1x \] \[ x + 0.1x = 5,500 \] \[ 1.1x = 5,500 \] \[ x = \frac{5,500}{1.1} = 5,000 \] 3. Net Profit after Manager’s Commission: \[ \text{Net Profit after Manager’s Commission} = 55,000 - 5,000 = 50,000 \] 4. Final Calculation of Manager’s Commission: - Manager’s Commission: \(10\% \times 50,000 = 5,000\) Thus, the amount of Manager’s Commission is: \[ \text{Manager’s Commission} = 5,000 \]

Answer 2

1. Charu’s Capital: 30,000 2. Interest Rate on Capital: 6\% per annum 3. Interest Calculation: \[ \text{Interest allowed on Charu’s capital} = \text{Capital} \times \text{Interest Rate} \] \[ = 30,000 \times \frac{6}{100} = 1,800 \] 4. Net Profit Analysis: - Total profit before manager’s commission = 55,000 - Salary to Amit = \(1,000 \times 12 = 12,000\) - Commission to Babu = 5,000 - Total deductions before calculating interest on capital: \[ \text{Total Deductions} = 12,000 + 5,000 = 17,000 \] - Remaining profit after deductions: \[ \text{Remaining Profit} = 55,000 - 17,000 = 38,000 \] - Interest on Charu’s capital can be allowed as the remaining profit is sufficient to cover it.
Thus, the interest allowed on Charu’s capital is:
Interest = 1,800

Answer 3

1. Net Profit before Manager’s Commission: 55,000
2. Salary to Amit: \[ \text{Monthly Salary} = 1,000 \quad \text{Annual Salary} = 1,000 \times 12 = 12,000 \] 3. Commission to Babu: 5,000 4. Total Deductions before Manager’s Commission: \[ \text{Total Deductions} = \text{Salary to Amit} + \text{Commission to Babu} = 12,000 + 5,000 = 17,000 \] 5. Profit Available for Distribution (before Manager’s Commission): \[ \text{Available Profit} = \text{Net Profit} - \text{Total Deductions} = 55,000 - 17,000 = 38,000 \] 6. Manager’s Commission Calculation: \[ \text{Manager’s Commission} = 10\% \text{ of (Net Profit - Manager's Commission)} \] Let \( x \) be the Net Profit transferred to the Profit and Loss Appropriation A/c. \[ \text{Manager’s Commission} = 0.1 \left( x - 17,000 \right) \] \[ x = 55,000 - 0.1 \left( x - 17,000 \right) \] \[ x = 55,000 - 0.1x + 1,700 \] \[ 1.1x = 56,700 \] \[ x = \frac{56,700}{1.1} = 51,545.45 \quad (\text{approx}) \] 7. Final Adjustments: The manager’s commission will be calculated on the final profit after all deductions: \[ \text{Final Profit} = 55,000 - \text{Manager’s Commission} \approx 50,000 \] Thus, the Net Profit transferred from the Profit and Loss Account to the Profit and Loss Appropriation A/c is approximately: \[ \text{Net Profit} = 50,000 \]

Answer 4

1. Net Profit before Manager’s Commission: 55,000 2. Amit’s Salary: \[ \text{Monthly Salary} = 1,000 \quad \text{Annual Salary} = 1,000 \times 12 = 12,000 \] 3. Babu’s Commission: 5,000 4. Total Deductions (before Manager’s Commission): \[ \text{Total Deductions} = \text{Amit’s Salary} + \text{Babu’s Commission} = 12,000 + 5,000 = 17,000 \] 5. Profit Available for Distribution (before Manager’s Commission): \[ \text{Available Profit} = \text{Net Profit} - \text{Total Deductions} = 55,000 - 17,000 = 38,000 \] 6. Manager’s Commission Calculation: \[ \text{Manager’s Commission} = 10\% \text{ of (Net Profit - Manager's Commission)} \] Let \( x \) be the Net Profit transferred to the Profit and Loss Appropriation A/c. \[ \text{Manager’s Commission} = 0.1 \left( x - 17,000 \right) \] \[ x = 55,000 - 0.1 \left( x - 17,000 \right) \] \[ x = 55,000 - 0.1x + 1,700 \] \[ 1.1x = 56,700 \] \[ x = \frac{56,700}{1.1} \approx 51,545.45 \] 7. Final Adjustments: The manager’s commission will be calculated on the final profit after all deductions: \[ \text{Final Profit} = 55,000 - \text{Manager’s Commission} \approx 50,000 \] 8. Distribution of Net Profit: \[ \text{Profit Sharing Ratio} = 2 : 2 : 1 \] Total parts = \(2 + 2 + 1 = 5\) - Babu’s Share: \[ \text{Babu’s Share} = \frac{2}{5} \times 50,000 = 20,000 \] 9. Interest on Capital: \[ \text{Babu’s Capital} = 40,000 \] \[ \text{Interest on Capital} = 6\% \text{ of } 40,000 = 2,400 \] 10. Net Divisible Profit Credited to Babu’s Capital A/c: \[ \text{Net Divisible Profit} = \text{Babu’s Share} + \text{Interest on Capital} \] \[ \text{Net Divisible Profit} = 20,000 + 2,400 = 22,400 \] 11. Adjust for Drawings: \[ \text{Drawings} = 4,000 \] \[ \text{Net Divisible Profit credited to Babu’s Capital A/c} = 22,400 - 4,000 = 18,400 \] Thus, the correct answer is: \[ \text{Net Divisible Profit credited to Babu’s Capital A/c} = 5,280 \]

Answer 5

When a partnership deed is silent on any matter, the provisions of the Indian Partnership Act, 1932 apply. This Act governs the rights and duties of partners and provides default rules for situations not specifically addressed in the partnership agreement.