First, I will attempt to translate your question. A man bought abc stock at $19.625 per share and sold it at $23.25 per share. What was his profit on 80 shares before deductions for commissions and taxes? Assuming my translation is correct, his gross profit was ($23.25 - 19.625) x 80.
$3oo.Oo
40
1.25%
you take the earning before interest and taxes
$25.60
23.25 19.65 _____ 03.60/share * 80 = $288. Why you put this in relationships is stupid. That's why I'm moving it to math.
$3oo.Oo
$23.25 - $19.65 = $3.60/share $3.60 x 80 = $288.00 gross profit
profit?
It's not typical in any industry that pays commission. To be clear, there is a different between gross profit and gross sales. Either way, paying commission on either is not the standard.Gross profit and gross sales implies a number beforing taking out sales taxes that a company must pay.Typically, commission is paid on net profit or net sales because the "sales person" because the company has to pay the taxes and the sales person had no bearing on these taxes.Look at it this way. When tipping (which is really like paying commission) a waiter/waitress, you should tip on the amount before taxes are added not after. Taxes are a product of the state laws, etc, not the business charging the taxes. The waiter has noting to do with something the state charges.
in the trading and profit and loss account where do i put commission payable
Commission received will appear on the credit
The size of a commission for car salesmen is calculated by the profit of the vehicle. The salesman gets a percentage of the profit of the vehicle.
If bought at 19.65 and sold at 23.25 per share the profit from one share is equal to 3.60. For 80 shares the profit would be 288.
to earn profit
Those commission costs would show as debits on the profit and loss.
0% profit