Ca cpt june 2014 question

CPT 996 views 4 replies

Mahmooda Zain

student

48 Points Joined May 2015

Yogam consigned cost of goods of Rs. 1,00,000 at an invoice price of 20% above cost. Consignee is entitled to 5% commission on sales up to Invoice price, 20% on sales which exceeds invoice price, 2% delcredre commission on credit sales. He sold 25% of goods for cash for Rs. 40,000 and 50% of goods on credit for Rs. 70,000, 10% of goods taken by consignee. Calculate commission?

a) Rs. 10,500 b) Rs.9900 c) Rs.10,200 d) none

Can someone please solve this out ? FYI..in the Question paper solution..the answer is a)10500 ..but in the CA CPT scanner its given as d) 'none of these'

Please give me a detailed explanation :) Thankyou!

Replies (4)

Hammad

Student

22 Points Joined June 2015

A very Good Morning To You, I Hope I'm Not Late.

Total Goods Sold =85%

COG=100000 I.P=120000 (100000+20%) COGS=85000

I.P (COGS) = 102000

5% commission on sales up to Invoice price = 5%* 102000 = 5100

20% on sales which exceeds invoice price = 20%(110000-90000) = 4000

2% delcredre commission on credit sales = 2%(70000) = 1400

TOTAL COMMISSION =10500

(I Took 110000 As Selling Price Of Goods Sold Above Invoice Price As Consignee Took 10% Of Remaining Goods (At Invoice Price) and 90000 As Cost OF Goods Because It's 75% of 120000 (Again Because Consignee Took Hold Of Goods At Invoice Price))

As Far As The Scanner Is Concerned,They Were Wrong.They Took Consignee's Takeover as Credit Sales And NEver Considered The Invoice Price For 5% commission on sales up to Invoice price.

I Hope This Suffice Your Query.All The best (If Youre Having your CPT tomorrow).