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Abhishek sharma (Querist)
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09 June 2009 HI,
IT's A HUMBLE REQUEST TO SOLVE THIS QUESTION.

Q:- X of Kolkata sends out goods costing Rs 1,00,000 to Y of Delhi. 3/5 th of goods were sold by consignee for Rs 70,000. Commission 2% on sales plus 20% of gross sales less all commission exceeds cost price. The amount of commission will be :-

a)2833
b)2900

PLZ also explain after concluding.

Jitender

Jitender (Expert)
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10 June 2009 a ) 2833.

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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10 June 2009 Let the normal commission (2% of sales) be ‘ X’ as per problem and
special commission(20% of gross sales less all commission exeeds Cost value .) be Y
so total commission be (X + Y)

Normal commission = Gross sales * 2% i.e. 70000 * 2% = 1400_________(i)

and, special commission i,e, Y = 20% of gross sales less all commission exceeds Cost value =
i.e. Y = 20%( gross sales- all commission – Cost value )

or, Y = 20% [70000 –[(X + Y)] – 60000]

or, Y = 20% [70000-(1400+Y)-60000] since X = 1400 as per (i) above

or, Y = 20% [70000-1400-Y-60000]

or, Y = 20% (8600 – Y)

or Y (100/20)= 8600- Y [solve this equation]

therefore, Y= 1433

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so normal commission ‘ X’is Rs. 1400 and
special commission Y is Rs. 1433
so total commission be (X + Y)= 1400 +1433 = 2833
Hence option is correct

Short cut method
[(70000* 2%)+ (70000-60000-1400)* 20/120]= 2833

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