X and Y are partners sharing profits and losses in the ratio 4:1. Z was manager who received the salary of Rs.8,000 p.m. in addition to a commission of 5% on net profits after charging such commission. Profits for the year is Rs. 13,56,000 before charging salary. Find the total remuneration of Z?

Rs. 1,56,000

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Rs. 1,76,000

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Rs. 1,74,000

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Rs. 1,52,000

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Solution

The correct option is A Rs. 1,56,000
Total remuneration = Salary + commission
= (RS-8,000 x 12) + RS-60,000(WN 1)
= RS-1,56,000.

Working notes:-
Net profit for commission = 13,56,000 - (8,000 x 12)
= RS-12,60,000.
Commission after charging such commission
= 12,60,000 x 5/105
= RS-60,000.

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