Question

X sends certain goods at cost plus 25%. Invoice value of goods sends out Rs. 2,00,000. 4/5th of the goods were sold by consignee at Rs. 1,76,000. Commission 2% up to invoice value and 10% of any surplus above invoice value. Commission = ?

• A. Rs. 4,800
• B. Rs. 5,200
• C. Rs. 3,200
• D. Rs. 1,600

Answer 1

Answer: (A)

Rs. 4,800

Invoice value of goods sold $=$ Invoice price of total stock $\times \frac{4}{5}$

$=$ $2,00,000$ $\times \frac{4}{5}$

$=$ $1,60,000$

Surplus above invoice value $=$ Total value of goods sold $-$ Invoice price of goods sold

$=$ $1,76,000$ $-$ $1,60,000$

$=$ $16,000$

Commission upto invoice price @2% $=$ Invoice price of goods sold $\times \frac{2}{100}$

$=$ $1,60,000$ $\times \frac{2}{100}$

$=$ $3,200$

Commission on surplus amount $=$ Surplus $\times \frac{10}{100}$

$=$ $16,000$ $\times \frac{10}{100}$

$=$ $1,600$

Therefore,

Total Commission $=$ Commission upto invoice value $+$ Commission on surplus amount

$=$ $3,200+1,600$

$=$ $4,800$.