Please help me in solving one consignment problem.

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

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

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

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

good jay and deepak

You're Welcome. It was a pleasure.

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

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

oh n Merry X'mas

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....

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

the stock reserve i am getting in this problem is 9000. i,e 45000+20% on 45000=54000 the stock reserve vl be 9000.

sorry friends,

u will be 11250.