Question

C of Bangalore consigned goods costing Rs. 3,000 to his agent at Delhi. Freight and insurance paid by consignor Rs. 100. Consignee's expenses Rs. 200. 805 of the goods were sold for Rs. 3,000. Commission 2% on sales. Consignee want to settle the balance with the help of bank draft. the amount of draft will be __________ .

• A. Rs. 2,740
• B. Rs. 2,800
• C. Rs. 3,000
• D. Rs. 1,800

Answer 1

The correct option is A Rs. 2,740

Sale price $=$ $3,000$

Consignee's expense $=$ $200\times \frac{80}{100}$

$=$ $160$

Consignee's commission $=$ Sale price $\times \frac{2}{100}$

$=$ $3,000\times \frac{2}{100}$

$=$ $60$

Amount of bank draft $=$ Sale price $-$ Consignee's expense $-$ Consignee's commission

$=$ $3,000-160-60$

$=$ $2,780$.