Slow and Steady Ltd. has a manager who is entitled to get a monthly salary of Rs.25,000 per month and in addition to receive a commission of 1% of the net profits of the company before such salary or commission. The following is the Profit and Loss Account of the company for the year ended 31st March, 2011:
|
Rs |
Rs |
||
|
To Staff Salaries |
1,920 |
By Gross Profit b/d |
9,650 |
|
To General Expenses |
885 |
By Subsidy from the Government |
600 |
|
To Depreciation |
820 |
By Profit on sale on land |
200 |
|
To Manager‘s Salary |
300 |
By Profit on sale of machinery (cost 2,50,000 and written down value 1,80,000) |
50 |
|
To Commission to the Manager (on account) |
60 |
||
|
To Provision for Bad Debts |
75 |
||
|
To Provision for income tax |
1,800 |
||
|
To Proposed Dividends |
1600 |
|
|
|
To Balance c/d |
3,040 |
|
|
|
|
10,500 |
10,500 |
Calculate the maximum remuneration payable to the Manager.