From the following information, calculate the manager’s commission at 12% of profit (i) before charging such commission and (ii) after charging such commission.
|
Rs |
Rs |
|
|
Gross Profit |
— |
70,000 |
|
Salaries |
24,000 |
|
|
Rent and Rates |
4,800 |
|
|
Office Expenses |
8,000 |
|
|
Selling Expenses |
10,000 |
|
|
Advertisement |
12,000 |
|
|
58,800 |
||
|
Profit before Commission: |
11,200 |
You are also required to show how this will appear in final accounts.