METHOD II

The Managing Director of Desi Manufacturing Ltd$.$ is entitled to a commission of $5\%$ on

the profits before charging such commission.

Following details are available for the year ending $31-3-2022$ :

$($i$)$ Net$-$Profit before charging the commission $35,00,000.$

$($ii$)$ Following had been charged off against the profits as determined in $(i)$ above :

$($a$)$ Depreciation on Fixed Assets $14,50,000$

$($b$)$ Provision for bad and doubtful debts $16,000.$

$($iii$)$ Other relevant information :

$($a$)$ Bad debts during the year $57,000$

$($b$)$ Depreciation for calculation for managerial remuneration $17,80,000.$

Compute the commission payable to the Managing Director.