ACCOUNTS
This query is : Resolved
09 June 2009
HI,
IT's A HUMBLE REQUEST TO SOLVE THIS QUESTION.
Q:- X of Kolkata sends out goods costing Rs 1,00,000 to Y of Delhi. 3/5 th of goods were sold by consignee for Rs 70,000. Commission 2% on sales plus 20% of gross sales less all commission exceeds cost price. The amount of commission will be :-
a)2833
b)2900
PLZ also explain after concluding.
IT's A HUMBLE REQUEST TO SOLVE THIS QUESTION.
Q:- X of Kolkata sends out goods costing Rs 1,00,000 to Y of Delhi. 3/5 th of goods were sold by consignee for Rs 70,000. Commission 2% on sales plus 20% of gross sales less all commission exceeds cost price. The amount of commission will be :-
a)2833
b)2900
PLZ also explain after concluding.
10 June 2009
Let the normal commission (2% of sales) be ‘ X’ as per problem and
special commission(20% of gross sales less all commission exeeds Cost value .) be Y
so total commission be (X + Y)
Normal commission = Gross sales * 2% i.e. 70000 * 2% = 1400_________(i)
and, special commission i,e, Y = 20% of gross sales less all commission exceeds Cost value =
i.e. Y = 20%( gross sales- all commission – Cost value )
or, Y = 20% [70000 –[(X + Y)] – 60000]
or, Y = 20% [70000-(1400+Y)-60000] since X = 1400 as per (i) above
or, Y = 20% [70000-1400-Y-60000]
or, Y = 20% (8600 – Y)
or Y (100/20)= 8600- Y [solve this equation]
therefore, Y= 1433
---------------------------------------
so normal commission ‘ X’is Rs. 1400 and
special commission Y is Rs. 1433
so total commission be (X + Y)= 1400 +1433 = 2833
Hence option is correct
Short cut method
[(70000* 2%)+ (70000-60000-1400)* 20/120]= 2833
special commission(20% of gross sales less all commission exeeds Cost value .) be Y
so total commission be (X + Y)
Normal commission = Gross sales * 2% i.e. 70000 * 2% = 1400_________(i)
and, special commission i,e, Y = 20% of gross sales less all commission exceeds Cost value =
i.e. Y = 20%( gross sales- all commission – Cost value )
or, Y = 20% [70000 –[(X + Y)] – 60000]
or, Y = 20% [70000-(1400+Y)-60000] since X = 1400 as per (i) above
or, Y = 20% [70000-1400-Y-60000]
or, Y = 20% (8600 – Y)
or Y (100/20)= 8600- Y [solve this equation]
therefore, Y= 1433
---------------------------------------
so normal commission ‘ X’is Rs. 1400 and
special commission Y is Rs. 1433
so total commission be (X + Y)= 1400 +1433 = 2833
Hence option is correct
Short cut method
[(70000* 2%)+ (70000-60000-1400)* 20/120]= 2833
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