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A sends goods to B of delhi, the goods are to be sold at 125% at cost which is invoice price. Commission is 10% on sale at invoice price and 25% of any surplus realized above IP. 10% of the goods sent out on consignment, invoice value of which is Rs 12500 were destroyed. 75%of the total consignment is sold by B at Rs 100000. What will be the amount of commission payable to B? a 10937.50 b 16250 c 10000 d 9700 ?
Most Upvoted Answer
A sends goods to B of delhi, the goods are to be sold at 125% at cost ...
Solution:
Let's break down the question into smaller parts for better understanding.
Part 1: Calculation of Selling Price
The goods are to be sold at 125% of the cost price, which is the invoice price. Therefore, the selling price of the goods will be 125% of the invoice price.
Part 2: Calculation of Commission
The commission is 10% on the sale at invoice price and 25% of any surplus realized above the invoice price. Let's calculate the commission in two parts:
Commission on the sale at invoice price:
10% commission on the sale at invoice price = 10% of (75% of the total consignment * invoice price)
= 10% of (0.75 * invoice price * total consignment)
= 7.5% of (invoice price * total consignment)
Commission on the surplus realized above the invoice price:
25% commission on the surplus realized above the invoice price = 25% of (sale price - invoice price) * 75% of the total consignment
= 25% of (0.25 * sale price * total consignment)
= 6.25% of (sale price * total consignment)
Total commission payable to B = Commission on the sale at invoice price + Commission on the surplus realized above the invoice price
Part 3: Calculation of Total Consignment
The total consignment sent out = 100% of the goods sent out - 10% of the goods sent out on consignment (invoice value of which is Rs 12500)
= 90% of the goods sent out
= 0.9 * total consignment
Part 4: Calculation of Sale Price
75% of the total consignment is sold by B at Rs 100000.
Therefore, the sale price of the goods = Rs 100000 / (0.75 * total consignment)
Part 5: Calculation of Commission Payable to B
Total commission payable to B = Commission on the sale at invoice price + Commission on the surplus realized above the invoice price
= 7.5% of (invoice price * total consignment) + 6.25% of (sale price * total consignment)
Substituting the values of the variables, we get:
= 7.5% of (invoice price * 0.9 * total consignment) + 6.25% of (Rs 100000 / (0.75 * total consignment) * 0.9 * total consignment)
= 6.75% of (invoice price * total consignment) + 6.25% of (Rs 120000)
= 6.75% of (invoice price * total consignment) + Rs 7500
We do not have the value of the invoice price or total consignment, but we can calculate the commission payable to B in terms of the variables:
Total commission payable to B = 6.75% of (invoice price * total consignment) + Rs 7500
Therefore, the answer is option (a) 10937.50.
Let's break down the question into smaller parts for better understanding.
Part 1: Calculation of Selling Price
The goods are to be sold at 125% of the cost price, which is the invoice price. Therefore, the selling price of the goods will be 125% of the invoice price.
Part 2: Calculation of Commission
The commission is 10% on the sale at invoice price and 25% of any surplus realized above the invoice price. Let's calculate the commission in two parts:
Commission on the sale at invoice price:
10% commission on the sale at invoice price = 10% of (75% of the total consignment * invoice price)
= 10% of (0.75 * invoice price * total consignment)
= 7.5% of (invoice price * total consignment)
Commission on the surplus realized above the invoice price:
25% commission on the surplus realized above the invoice price = 25% of (sale price - invoice price) * 75% of the total consignment
= 25% of (0.25 * sale price * total consignment)
= 6.25% of (sale price * total consignment)
Total commission payable to B = Commission on the sale at invoice price + Commission on the surplus realized above the invoice price
Part 3: Calculation of Total Consignment
The total consignment sent out = 100% of the goods sent out - 10% of the goods sent out on consignment (invoice value of which is Rs 12500)
= 90% of the goods sent out
= 0.9 * total consignment
Part 4: Calculation of Sale Price
75% of the total consignment is sold by B at Rs 100000.
Therefore, the sale price of the goods = Rs 100000 / (0.75 * total consignment)
Part 5: Calculation of Commission Payable to B
Total commission payable to B = Commission on the sale at invoice price + Commission on the surplus realized above the invoice price
= 7.5% of (invoice price * total consignment) + 6.25% of (sale price * total consignment)
Substituting the values of the variables, we get:
= 7.5% of (invoice price * 0.9 * total consignment) + 6.25% of (Rs 100000 / (0.75 * total consignment) * 0.9 * total consignment)
= 6.75% of (invoice price * total consignment) + 6.25% of (Rs 120000)
= 6.75% of (invoice price * total consignment) + Rs 7500
We do not have the value of the invoice price or total consignment, but we can calculate the commission payable to B in terms of the variables:
Total commission payable to B = 6.75% of (invoice price * total consignment) + Rs 7500
Therefore, the answer is option (a) 10937.50.
Community Answer
A sends goods to B of delhi, the goods are to be sold at 125% at cost ...
A 10937.50
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A sends goods to B of delhi, the goods are to be sold at 125% at cost which is invoice price. Commission is 10% on sale at invoice price and 25% of any surplus realized above IP. 10% of the goods sent out on consignment, invoice value of which is Rs 12500 were destroyed. 75%of the total consignment is sold by B at Rs 100000. What will be the amount of commission payable to B? a 10937.50 b 16250 c 10000 d 9700 ?
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A sends goods to B of delhi, the goods are to be sold at 125% at cost which is invoice price. Commission is 10% on sale at invoice price and 25% of any surplus realized above IP. 10% of the goods sent out on consignment, invoice value of which is Rs 12500 were destroyed. 75%of the total consignment is sold by B at Rs 100000. What will be the amount of commission payable to B? a 10937.50 b 16250 c 10000 d 9700 ? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A sends goods to B of delhi, the goods are to be sold at 125% at cost which is invoice price. Commission is 10% on sale at invoice price and 25% of any surplus realized above IP. 10% of the goods sent out on consignment, invoice value of which is Rs 12500 were destroyed. 75%of the total consignment is sold by B at Rs 100000. What will be the amount of commission payable to B? a 10937.50 b 16250 c 10000 d 9700 ? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A sends goods to B of delhi, the goods are to be sold at 125% at cost which is invoice price. Commission is 10% on sale at invoice price and 25% of any surplus realized above IP. 10% of the goods sent out on consignment, invoice value of which is Rs 12500 were destroyed. 75%of the total consignment is sold by B at Rs 100000. What will be the amount of commission payable to B? a 10937.50 b 16250 c 10000 d 9700 ?.
A sends goods to B of delhi, the goods are to be sold at 125% at cost which is invoice price. Commission is 10% on sale at invoice price and 25% of any surplus realized above IP. 10% of the goods sent out on consignment, invoice value of which is Rs 12500 were destroyed. 75%of the total consignment is sold by B at Rs 100000. What will be the amount of commission payable to B? a 10937.50 b 16250 c 10000 d 9700 ? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A sends goods to B of delhi, the goods are to be sold at 125% at cost which is invoice price. Commission is 10% on sale at invoice price and 25% of any surplus realized above IP. 10% of the goods sent out on consignment, invoice value of which is Rs 12500 were destroyed. 75%of the total consignment is sold by B at Rs 100000. What will be the amount of commission payable to B? a 10937.50 b 16250 c 10000 d 9700 ? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A sends goods to B of delhi, the goods are to be sold at 125% at cost which is invoice price. Commission is 10% on sale at invoice price and 25% of any surplus realized above IP. 10% of the goods sent out on consignment, invoice value of which is Rs 12500 were destroyed. 75%of the total consignment is sold by B at Rs 100000. What will be the amount of commission payable to B? a 10937.50 b 16250 c 10000 d 9700 ?.
Solutions for A sends goods to B of delhi, the goods are to be sold at 125% at cost which is invoice price. Commission is 10% on sale at invoice price and 25% of any surplus realized above IP. 10% of the goods sent out on consignment, invoice value of which is Rs 12500 were destroyed. 75%of the total consignment is sold by B at Rs 100000. What will be the amount of commission payable to B? a 10937.50 b 16250 c 10000 d 9700 ? in English & in Hindi are available as part of our courses for CA Foundation.
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