23 April 2009
x of kolkatta sends out goods costing 100000 to y of mumbai at cost+25%. consignor's expenses Rs 2000. 3/5th of the goods were sold by consignee at 85000.commission 2% on sales + 20% of gross sales less all commission exeeds invoice value. Amount of commission eill be (A) Rs 3083 (B) Rs 3000 (C) Rs 2500 (D) Rs 2000
23 April 2009
Let the normal commission (2% of sales) be ‘ X’ as per problem and special commission(20% of gross sales less all commission exeeds invoice value.) be Y so total commission be (X + Y)
Normal commission = Gross sales * 2% i.e. 85000 * 2% = 1700_________(i)
Again special commission i,e, Y = 20% of gross sales less all commission exceeds invoice value.= i.e. Y = 20%( gross sales- all commission – invoice value) or, Y = 20% [75000 –[(X + Y)] – 60000] or, Y = 20% [75000-1700-Y-60000] since X = 1700 as per (i) above or, Y = 20% (8300 – Y) or Y (100/20)= 8300- Y therefore, Y= 1383
so normal commission ‘ X’is Rs. 1700 and special commission Y is Rs. 1383 so total commission be (X + Y)= 1700 +1383 = 3083 Hence option is correct
Short cut method [(85000* 2%)+ (85000-75000-1300)* 20/120]= 3083
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