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Please help me in solving one consignment problem.

new user (student) (59 Points)

10 August 2009

X of kolkata sends out goods costing rs 1,00,000 to y of delhi.3/5 th of the goods were sold by consignee for rs 70,000.Commission 2% on sales plus 20% on gross sales less all commission exceeds cost price.The amount of commission will be? A.Rs.2833 B.Rs.2900 C.Rs.3000 D.Rs.2800. The answer is A.Rs.2833. Can any1 explain me how to solve these problem?

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26 Replies

(Guest)

Cost of goods sold = 3/5 * 1,00,000 = Rs. 60,000

Selling Price of goods sold = Rs. 70,000

Ordinary Commission = 2% on Rs. 70,000 = Rs. 1,400

Now, Let the extra commission be Rs. X

Therefore, According to Problem:

X = 20% [(70,000 - 1,400 - X) - 60,000]

or, X = 1/5 * (8,600 - X)

or, 5X = 8,600 - X

or, X = 8,600/6 = 1,433

Therefore, Total Commission = Rs. (1,400 + 1,433) = Rs. 2,833

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CA,CMA,CS Karan Gogia (Employed) (230 Points)
Replied 10 August 2009

its a basis apptitue question.....well done deepak....

shivam (3354) (319 Points)
Replied 10 August 2009

first of all concentrate on question

it includes two types of commission

1) 2% commision on sales

here sales of Rs. 70000

so 1st comm. will be 1400

2)20% on gross sales(i.e 70000) less all commission (i.e x) exceedscost price.(60000)

now we have to find out exceed over cost i.e 10000.as deepak find

now concentrate on 2)

[ 70000-x-60000]*20%

now on [...] we have to pay commission where x is total commission.

if we make sum of 1 &2 then

1400+ [70000-x-60000]*20%=x

1400+(10000-x)20%=x

so x=1400+2000-.2x

so x=2833

hitesh kumar (Chartered Accountant) (78 Points)
Replied 11 August 2009

Luckyboy atleast say thanks to Deepak & Jay, u got ur answer if u r humble enough

Sumit Jain (CA) (4760 Points)
Replied 11 August 2009

good jay and deepak

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new user (student) (59 Points)
Replied 11 August 2009

Thank you very much deepak. Thank you very much jay. For helping me. Sorry hitesh i replied late because i am using opera mini and seen my reply through mobile site of caclubindia.com,but havent got reply option there,but when i check my inbox and replied.Sorry for late reply

(Guest)

You're Welcome. It was a pleasure.

majeetha parveen.s.m (student) (26 Points)
Replied 25 December 2010

Ram of kolkata sends out goods costing 1,00,000 to y of mumbai at 20% profit on invoice price.1/10th of the goods were lost in transit.1/2 of the balance goods were sold. the amount of stock reserve on consignment stock will be? ans:11250

can anyone help me in soving this problem

Sourabh (Student) (360 Points)
Replied 25 December 2010

Originally posted by : majeetha parveen.s.m

can anyone help me in soving this problem

ANSWER= total goods cost=100000

lost=1/10 of 100000=10000

remaining=100000-10000=90000

cost of goods sold=1/2 of 90000=45000

invoice price=45000+x

profit=20% of 45000+x

solving x u get it as 11250

1 Like

Sourabh (Student) (360 Points)
Replied 25 December 2010

sorry majeetha new on this forum,so goofed up the quote. hope u can understand the solution

oh n Merry X'mas

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majeetha parveen.s.m (student) (26 Points)
Replied 25 December 2010

hello thank u for replying...but i could not understand from the step invoice price =45000+x can you plz explain it in detail which will be very helpful for me....

Sourabh (Student) (360 Points)
Replied 26 December 2010

Originally posted by : majeetha parveen.s.m
	hello thank u for replying...but i could not understand from the step invoice price =45000+x can you plz explain it in detail which will be very helpful for me....

X is amount of profit.since 45000 is cost of goods sold,its selling price or invoice price would be 45000+profit or 45000+X.from that u can calculate profit n invoice price as profit % given is on invoice price

1 Like