Consignment problem

draft will be 930.prepare a consignment a\c dr side sum is = 8250+650+400+870+930+40 = 10210

sum of cr side = 2750+8350 = 11100

draft = 10210-11100 = 890

commission = 2% of 70000+20% of 70000 - nil

                        = 1400+14000 - nil

                        = 15400

NOTE: as 1400+14000 = 15400 that is less tan 100000\- so all commission exceeds cost price is nil.

1.to find out the amount sent to the consignor, you have to prepare consignee's ledger account. we will debit 3000 to consignee on receiving the acceptance of bill and debit 870 to consignee after receiving of account sales for his commission and expenses. now we will credit his account by 8350 for the sales amount. balance is what he should send us to settle the account. i.e. 8350 - 870 -3000 =4480

2.2% of gross sales is 2/100*70000 = 1400 now to calculate profit above cost. 3/5th goods will be costing 3/5*(100000)=60000 so surplus is 70000-60000 = 10000. now we have to lessen the commission on gross sales i.e. 1400 so surplus is 10000-1400 = 8600. now we have to pay commission of 20% after paying commission (since this commission should also be deducted) so commission = 20/120*8600 = 1433.33 so total commission is 2833.33