alleryManager's commission is 10% of net profit after such commission. Net profit before commission ₹1,10,000. Commission:
A₹10,000 (10% of pre)
B₹11,000 (gross 10% post)
C₹10,000 (10% of post)
D₹12,222 (after-tax rate)
Answer & Solution
Correct answer: C. ₹10,000 (10% of post)
1. Let commission = C.
2. Profit after commission = 1,10,000 − C.
3. Equation: C = 10% × (1,10,000 − C) → 10C = 1,10,000 − C → 11C = 1,10,000 → C = ₹10,000.
_Source: ICAI BoS Foundation Paper 1, Ch 7 U1 "Final Accounts", §1.4 manager's commission_
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