X, Y and Z are partners sharing profits and losses equally. As per Partnership Deed, Z is entitled to a commission of 10% on the net profit after charging such commission. The net profit before charging commission is Rs. 2,20,000. Determine the amount of commission payable to Z.


Net Profit before charging Commission = Rs. 2,20,000
Commission to Z = 10% of on Net Profit after charging such commission
Partner’ s Commission = (Net profit×Rate of commission)/ (100+Rate of commission)
Z’ s Commission = (2,20,000×10)/ (100+10) =20,000

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