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CPT accounts query

Satvir Singh (Newly minted CA) (1733 Points)

19 October 2009

Hello,

Can anyone please explain the meaning of the line below:

"Commission 2% on sales plus 20% of gross sales less all commission exceeds cost price"

If cost price is 60,000 and selling 70,000. How to calculate commission??

THANKS IN ADVANCE

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10 Replies

gurdeep singh (CA Article Assistant ) (60 Points)
Replied 19 October 2009

Originally posted by :Satvir Singh Litt
"	Hello, Can anyone please explain the meaning of the line below: "Commission 2% on sales plus 20% of gross sales less all commission exceeds cost price" If cost price is 60,000 and selling 70,000. How to calculate commission?? THANKS IN ADVANCE	"

see brother here

ordinary commision that is 2% on sale is to be provided 2% on 70000 i.e 1400

and a additional commision on the surplus (gross sales - cost price ) i.e 20% on 10000 ie 2000

total commission 3400

correct me if i am wrong

Satvir Singh (Newly minted CA) (1733 Points)
Replied 19 October 2009

sorry bro, i m afraid, u r wrong.

I also tried to calculate with same method, but the correct answer as per book is 2833

nikhil ((CA Final) Article) (363 Points)
Replied 19 October 2009

bro it's very simple question :)

first of all calculate commission on sale that is 70000 on 2% that is 1400 and then

deduct 70000-60000=10000

deduct 10000-1400=8600 gross sales less all commission exceeds cost price

and then 8600 on 20% on cost price then what will be on selling price that is 8600*1/6 =1433.33

then add both commission 1433.33+1400=2833answer

Ram Avtar Singh (Nagari Sultanpur U.P.Delhi) (14477 Points)
Replied 19 October 2009

Dear read full question and answer by this /forum/messages/2009/8/42451_please_help_me_in_solving_one_consignment_problem_.asp?quote=216913&

Satvir Singh (Newly minted CA) (1733 Points)
Replied 19 October 2009

thanks everyone

shreya jain (student) (33 Points)
Replied 11 November 2009

hey can anyone tell me dat how i remember d data of economics?is it necessary to remember al d years data?

CA Paras jain (Audit Senior Assistant) (1544 Points)
Replied 11 November 2009

shreya u have to learn it..some of the question in cpt are based on data..

n u dnt need to learn data of all the years bt of some year which are cosidered important in economics..

like if u r learning the data of contribution of diffrent sectors in indian economy then learn the years in which the sectors have highest and lowest contribution

or the year in which any sector grows at a rapid rate n it have historic contribution