Explain once again

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Hari

student

45 Points Posted on 23 November 2010

Thanks for Replay

Suppose we calculate 40000*20/100=8000, but r u shows Rs.10000 how to get that amount. Please explain that part.

3. Consignor sends out goods worth Rs.100000 to his consignee. He sells 3/5 of the goods Rs.70000. Consignee gets 2% commission on sales plus 20% of gross sales less all commission exceeds cost price. Ans: Rs.2833

Replies (2)

nidhi agrawal

chartered accountant

62 Points Posted on 24 November 2010

2% comm= 2% of 70000 =1400

20% comm= 20% of sales- cost- all comm

=20/120(70000-60000-1400)=1433

total comm=1400 + 1433 =2833

v@m$h!

CA - Final and CS - Final

1005 Points Posted on 24 November 2010

see hari,

                   If sale price                             =               100

                   Profit on sale                          =                  20

                   Cost price                               =                  80                    40000(given)

Then sale price will become, by cross multiplication,

sale price = 100*40000/80 = 50000

Commission on sales (5% on 50000) = 2500

3. Cost price consigned = 100000

Cost price of goods sold (3/5) = 60000

Sale price of goods sold           = 70000

Profit on sold goods                   = 10000

Commission = 2%(70000) = 1400

Commission = 20/120( 70000-60000-1400) = 1433
8600 -120
         -20
This is because 8600 already included the 20% commission
Total commission = 1400+1433=2833