umesh yadav (IPCC) (96 Points)
31 May 2011X of kolkata sends out goods cousting Rs 2,00,000 to Y of mumbai @ cost +25% . Consignor'S expenses Rs 12,000
3/5 of goods wer sold by consignee @ RS 1,70,000
1)commision 2% on sale + 20% of gross sale less all commission exceeds cost price
2) comission 2% up to invoice vale and 10% of any surplus above invoice value
Rajnikant Vadigoppula
(CA, CS And CMA Final)
(919 Points)
Replied 31 May 2011
1. Rs.3400 (170000*2%) + Rs.9320 {(170000-120000-3400)*20%} total =Rs.12720.
alternatively all commission means after deducting commission=rate/100+ rate
in that case, Rs. 7767 {(170000-120000-3400)*20/120} then total = Rs. 11167
2. 3000 (150000*2%) + 2000 {(170000-150000)*20%} Total = Rs.5000
mridul savio Pinto
(articled trainee )
(1477 Points)
Replied 31 May 2011
the total commission will be 170000*2 % =3400
at invoice price 3/5 of the goods will be =150000
take 20 % as 1/5
1/5 x =(170000-150000) -(3400-x)
20000-3400 =6x
x =16600/6=2766.66
so total commission for 1st case 2766.66+3400 =6166.67
for case 2 :
invoice value =(150000*2 pc ) =3000 , exceeds invoice price (20000*10 % ) =2000 (170000-150000)
=5000
please tell me if i am wrong
mridul savio Pinto
(articled trainee )
(1477 Points)
Replied 31 May 2011
it should be (170000-120000)
50000-3400 =6x
for ist case 11166.67
Rajnikant Vadigoppula
(CA, CS And CMA Final)
(919 Points)
Replied 31 May 2011
@ mridul
Refer my alternate answer in 1st case
shakuntala chhangani
(FCA Course co-ordinator WIRC coaching centre)
(2525 Points)
Replied 04 June 2011
Hi Umesh,
let the total commission be X
therefore sales less all commission = 1,70,000 - X
cost price of 3/5 of goods sold = 2,00,000 *3/5 = 1,20,000
hence, meaning of sales - all commission exceeds cost price = 1,70,000 - X - 1,20,000
now, X = 1,70,000 * 2% + 20%(1,70,000 - X - 1,20,000)
X = 3,400 + 20% (50,000 - X)
X = 3,400 + 10,000 - 0.20X
X + 0.20 X = 13,400
1.20X = 13,400
X = 13,400 / 1.20 = Rs. 11,167
Regards, CA Shakuntala Chhangani
CAclubindia
