Accountancy Mathematics: Incomplete Records -"Computation of Manager's Commission

In Incomplete records, examination question often includes manager’s commission.


The commission may be expressed as a percentage of profits AFTER such commission had been deducted.


The net profits of a business are $500,000 and the manager is entitled to 10% of the net profits AFTER such commission has been deducted.

Question: Compute his commission?




Percentage Commission x Profits before Commission

100 +% Commission


=10/110 x $500,000


= $45,454.50


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