Consignment

10% goods invoice value = 12500
1% goods invoice value = 12500/10%
100% goods invoice value = (12500/10%)x100% =					1,25,000.00
75% of consignment is sold:
Invoice value of 75% consignment = 125000x75% =					93,750.00
Sale Price of 75% consignment					1,00,000.00
Surplus above invoice price (100000-93750)					6,250.00
Commission:
A) 10% on sales at invoice price
i.e. 93750 x 10%					9,375.00
B) 25% on surplus above invoice price
i.e. 6250 x 25%					1,562.50
Total Commission					10,937.50

There are three types of commission:
1. General commission which is allowed for goods sold by consignee.(It is calculated on total sales if no information is given in question)
2. Del credre commission which is allowed to collect amount from debtors for credit sales.(It is also calculated on total sales if no information is given in question)
3. Overriding Commission: to sale goods over and above the invoice price.(it is always calculated on excess price realised i.e . Sales -Invoice price of goods sold).

In above question
Invoice price of total goods will be = 12500÷10% = 125000

Invoice price of goods sold = 125000*75% =93750

Sales = 100000

Excess price realised = 100000-93750= 6250.

Commission will be:
General comm(on invoice price of goods sold as specified in question) = 93750*10% = 9375.

Overriding Commission( on excess price realised) = 6250*25% = 1562.50

Total Comm. = 9375 + 1562.50 = 10937.50