Study SimplifyStudy Simplify

Class 12 Accountancy Notes · GSEB

Commission on Profit

Commission on Profit — Solve every 3-mark commission sum: compute commission, reverse-find profit, and find partners' shares with worked GSEB board sums. GSEB Class 12 Commerce Accountancy notes.

Last updated: 27 Sep 2026

Notes

What This Sum Asks

The question gives the net profit (or a commission amount), the rate r%, and a wording that decides the base — you must find the commission, then the divisible profit (or profit before commission) and each partner's share. This is a standard 3-mark board sum.

Two labels decide where the entry goes: a partner's commission is an appropriation of profit(P&L Appropriation A/c), while a manager's commission is a charge against profit(P&L A/c).

Two bases of computation — the whole topic in one strip

1 · On profit before deduction

Commission = Net profit × r / 100

Wording: “commission on net profit”

2 · ⭐ On profit after deduction

Commission = Net profit × r / (100 + r)

Wording: “after deduction of such commission / such share”

Steps to Solve

Before deduction basis
Commission = Net profit × r / 100
Wording: 'commission on net profit' (no 'after deduction' phrase)
After deduction basis
Commission = Net profit × r / (100 + r)
Wording: 'after deduction of such commission / such share'
Reverse — commission given, find profit (after basis)
Profit before commission = Commission × (100 + r) / r
Also: Divisible profit = Commission × 100 / r

Worked assumption line — always show it in your solution

“Assume profit after commission = ₹ 100 → commission = ₹ r → profit before = ₹ (100 + r).”

Interactive Problem Solver

Enter your own profit (or commission), rate and basis — the solver walks the exact exam-order procedure: read the basis → select the formula → compute commission → divisible profit / profit before.

Commission Solver — before / after deduction
Try your own commission problem

Default = textbook Illustration 2 (Hitesh): profit ₹ 1,65,000, 10% after deduction → commission ₹ 15,000, divisible profit ₹ 1,50,000. Wording decides the basis — see the phrase list above.

Work through steps 1–4 in order — the same four steps you will write in the exam.

Worked Board Sums

Type 2 — Commission: Board Sums

9 problems

Pattern A — Find commission when profit is given

Hansa, Hitesh & Vijay, capital 3:2:1. Hitesh entitled to 10% commission of net profit after deduction of his such share. Profit ₹ 1,65,000. What amount will Hitesh receive?Hitesh receives ₹ 65,000 (₹ 50,000 profit + ₹ 15,000 commission)
  1. Capital ratio 3:2:1 is NOT the profit ratio → PSR absent → equal (1:1:1)
  2. Commission (after basis) = 1,65,000 × 10/110 = ₹ 15,000
  3. Divisible profit = 1,65,000 − 15,000 = ₹ 1,50,000
  4. Hitesh's profit share = 1,50,000 × 1/3 = ₹ 50,000
  5. Total received = 50,000 + 15,000

Textbook Illustration 2. ⭐ When only capital ratio is given, distribute profit equally.

Amruta & Divya, capital ratio 3:2. Amruta paid 8% commission on net profit after deduction of such commission. Profit ₹ 96,876. What amount will Amruta receive? (M20)Amruta receives ₹ 52,026
  1. Commission = 96,876 × 8/108 = ₹ 7,176
  2. Divisible profit = 96,876 − 7,176 = ₹ 89,700
  3. PSR absent → equal: Amruta's share = 89,700 ÷ 2 = ₹ 44,850
  4. Total = 44,850 + 7,176
Ram & Shyam, PSR 3:1. Ram entitled to 8% commission after deducting his such share. Profit before commission on 31-3-16 = ₹ 1,56,600. What amount will Ram receive?Ram receives ₹ 1,20,350
  1. Commission = 1,56,600 × 8/108 = ₹ 11,600
  2. Divisible profit = 1,56,600 − 11,600 = ₹ 1,45,000
  3. Ram's share = 1,45,000 × 3/4 = ₹ 1,08,750
  4. Total = 1,08,750 + 11,600

Pattern B — Manager's commission given → find profit & distribution

Jayesh, Suresh & Pankaj PSR 6:2:3. A manager received commission of ₹ 6,600 at 10% after deduction of such commission from profit. Ascertain distribution of profit amongst the partners.₹ 36,000 : ₹ 12,000 : ₹ 18,000 (total ₹ 66,000)
  1. Commission = 10% of profit after commission → Divisible profit = 6,600 × 100/10 = ₹ 66,000
  2. Jayesh = 66,000 × 6/11 = ₹ 36,000
  3. Suresh = 66,000 × 2/11 = ₹ 12,000
  4. Pankaj = 66,000 × 3/11 = ₹ 18,000

Textbook Illustration 3.

Pattern C — One partner's profit share given → find manager's commission

Sheela, Surbhi, Seema PSR 5:7:9. Manager Sanket gets 10% commission from profit after deduction of such commission. Surbhi receives ₹ 7,000 profit. Find Sanket’s commission and profit before commission.Commission ₹ 2,100; Profit before commission ₹ 23,100
  1. Surbhi's share = 7/21 of divisible profit = ₹ 7,000 → divisible profit = 7,000 × 21/7 = ₹ 21,000
  2. Sanket's commission = 10% of divisible profit = 21,000 × 10/100 = ₹ 2,100
  3. Profit before commission = 21,000 + 2,100

Textbook Illustration 4. Commission % after-deduction base IS the divisible profit.

Vismay, Abhijit, Kunal PSR 3:2:4. Manager paid 10% commission on profit after deduction of his such share. Abhijit’s profit share ₹ 30,000. Determine manager’s commission. (M22, J23)Manager's commission ₹ 13,500
  1. Abhijit = 2/9 of divisible = ₹ 30,000 → divisible = 30,000 × 9/2 = ₹ 1,35,000
  2. Commission = 1,35,000 × 10/100 = ₹ 13,500
Rima, Rina, Riva PSR 1:2:3. Manager entitled to 10% commission on profit after deducting such commission. Rina's share ₹ 20,000. Find manager's commission and profit before deducting commission.Commission ₹ 6,000; Profit before commission ₹ 66,000
  1. Rina = 2/6 of divisible = ₹ 20,000 → divisible = 20,000 × 6/2 = ₹ 60,000
  2. Commission = 60,000 × 10/100 = ₹ 6,000
  3. Profit before commission = 60,000 + 6,000

Pattern D — Partner's commission given → find another partner's share

Dipa, Diya & Dina share 3:2:1. Diya entitled to 5% commission after deduction of such commission from profit. Diya receives ₹ 8,000 as commission. Find Dina’s share.Dina's share = ₹ 26,666.67 (₹ 1,60,000 × 1/6)
  1. Commission = 5% of divisible profit → divisible profit = 8,000 × 100/5 = ₹ 1,60,000
  2. Dina = 1,60,000 × 1/6

Non-terminating — present as 26,666.67 or 80,000/3.

Ramu, Balu & Shyamu share 2:3:5. Shyamu gets 7% commission after deducting such commission and receives ₹ 14,000 commission. Find Ramu’s share.Ramu's share ₹ 40,000
  1. Divisible profit = 14,000 × 100/7 = ₹ 2,00,000
  2. Ramu = 2,00,000 × 2/10

Key Takeaways

Key Takeaways

  • Two formulas: Profit × r/100 (before) and Profit × r/(100+r) (after). ⭐ "After deduction of such commission" is the trigger.
  • After-basis reverse: divisible profit = commission × 100/r; profit before = commission × (100+r)/r.
  • Capital ratio ≠ profit ratio — no PSR given → distribute profit equally.
  • Partner's receipt = profit share + commission — add both when asked "what amount will X receive".
  • Manager's commission = charge (P&L A/c); partner's commission = appropriation (P&L Appropriation A/c).
  • Partner's share given → ÷ their ratio fraction = divisible profit; commission = r% of that.