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urgent query

Accounting Entries 1348 views 4 replies

Purnima

student

25 Points Posted on 24 June 2009

plss solve this...urgentlyyyy

B sold 50 television at RS.15000 per television. he was entitled to commission of RS.500 per television sold plus 1/4 of the amount by which the gross sales proceeds less total commission there on exceeded a sum calculated at the rate of RS.12500 per television sold.
Amount of commission will be

pls frnds solve it soon & pls also post its full calculation & concept behind it...

Replies (4)

Skand Kamat

Student

197 Points Posted on 24 June 2009

Answer is 50000.00

50*500 = 25000.00 +

1/4(15000*50)-(12500*50)-25000

1/4(750000-625000-25000)

1/4(100000) = 25000

CA Mohit Agarwal

Chartered Accountant

1025 Points Posted on 24 June 2009

hi purnima

15000*50=725000

12500*50=625000

Commission amt

1/4(725000-625000)

1/4*125000=31250

Total Commission amt = 25000+31250=56250.

COMMISSION AMT IS RS. 56250/-

Skand Kamat

Student

197 Points Posted on 24 June 2009

Hi Poornima,

My previous answer was wrong. Need use an equaition to solve this problem as the Question says " less total commission there on exceeded a sum calculated". The equation is below -

750000-6250000-(25000+0.25X)=X

125000-25000=X+.25X

100000=1.25X

X = 100000/1.25

X = 80000 is the exceeding amount of gross sales over normal sales less total commission.

So80000*25% = 20000.

Total commission is 20000+25000 = 45000