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Solve plz

A/c entries 631 views 3 replies

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X send out goods costing Rs80,000 to Y so as to show 20% profit on invoice price. 40% of goods were lost in transit. 60% of goods received were sold half at invoice price and balance at 25% above the invoice price,rate of commission is 10% on the sales at invoice price plus 50% on gross sales less all commission exceeds the invoice price. The amount of commission is

Replies (3)

Rajnikant Vadigoppula

CA CS And CMA Final

919 Points Joined May 2009

normal commission = 10% of invoice price {(80000*100/80)-40%}

= 60000*10/100=6000.

excess commission = [{(80000*100/80)-40%}1/2+25%] - 6000(commission)*50%

=(30000+25%-6000)*50%=(37500-6000)*50%=15750

total commission = 6000+15750=21750

uttam

25 Points Joined January 2010

			Commission
Particulars	Cost	Invoice Value	10% on Sales	50% on excess Gross Sales
Total Goods	80000	100000
Lost in Transit	32000	40000
goods received	48000	60000

60% of goods received		36000

Sale value of 1/2 of 60% (as above)		18000	1800
Sale value of remaining 1/2 of 60%		22500	1800	1350
			3600	1350
			Total commission	4950