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
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Replies (3)
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
| 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 | |||
Refer attachment for workings
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