Query on "Consignment" in Accounts (CPT)

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IPCC Student (Querist)
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17 November 2009 Q. X sends out goods costing 1,00,000 to Y at cost + 25%. Consignor's expenses Rs. 2,000. 3/5th of the goods were sold by consginee at 85000. Commission 2% on sales + 20% of gross sales less all commission exceeds invoice value. Amount of commission will be ?

shakuntala chhangani

shakuntala chhangani (Expert)
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30 November 2009 Hi Pradeep, invoice price of total goods is 1,00,000+25% ie Rs. 1,25,000. since only 3/5 of the goods were sold ,only 3/5 of the invoice price will be considered for solution. Let the total commission be X. Now,
X = 85,000 x 2% + 20%[(85,000-X)- 75,000]
X = 1,,700 + 20%(10,000-X)
X = 1,700 + 2,000 - 0.20X
X + 0.20X = 3,700
1.2X = 3,700
X = 3083
Its from model Q papers of Institute. similar Q is appearing in study material with answer 2833. Regards,
CA Shakuntala Chhangani

IPCC Student

IPCC Student (Querist)
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30 November 2009 Thanks a lot for putting your valubale time in resolving the question.

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