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A of Mumbai sold goods to B of Delhi, the goods are to be sold at 125% of cost which is invoice price. Commission 10% on sales at invoice price and 25% of any surplus realized above invoice price. 10% of the goods sent out on consignment, invoice value of which is R.s 12,500 were destroyed. 75% of the total consignment is sold by B at Rs. 1,00,000. What will be the amount of commission payable to B?
- a)Rs. 10,937.50
- b)Rs. 10,000
- c)Rs. 9,000
- d)Rs. 9,700
Correct answer is option 'A'. Can you explain this answer?
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Most Upvoted Answer
A of Mumbai sold goods to B of Delhi, the goods are to be sold at 125%...
Given information:
- Mumbai sold goods to Delhi
- Goods to be sold at 125% of cost (invoice price)
- Commission of 10% on sales at invoice price and 25% of any surplus realized above invoice price
- 10% of the goods sent out on consignment, invoice value of which is Rs. 12,500 were destroyed
- 75% of the total consignment is sold by B at Rs. 1,00,000
To find: Commission payable to B
Calculations:
1. Cost of goods sold by A to B:
- Let the cost price of goods sold by A to B be x
- Selling price (invoice price) = 125% of cost price = 1.25x
- Total consignment sent = 100%
- Consignment sent on commission = 10%
- Consignment sold by B = 75% of 90% (remaining after commission) = 67.5%
- Total sales by B = Rs. 1,00,000
- Sales of 67.5% of goods = Rs. 1,00,000
- Therefore, sales of 100% of goods = (100/67.5) x 1,00,000 = Rs. 1,48,148.15
- Cost of goods sold by A to B = x
- Selling price = 1.25x
- Surplus realized above invoice price = 1.48,148.15 - 1.25x
- Commission payable on sales at invoice price = 10% of 1.25x = 0.125x
- Commission payable on surplus realized above invoice price = 25% of (1.48,148.15 - 1.25x) = 0.185x - 9,259.26
- Total commission payable to B = Commission on sales at invoice price + Commission on surplus = 0.125x + 0.185x - 9,259.26 = 0.31x - 9,259.26
2. Value of destroyed goods:
- Invoice value of consignment sent on commission = Rs. 12,500
- 10% of these goods were destroyed = Rs. 1,250
- This value is borne by A and not included in commission payable to B
3. Total cost of goods sold by A:
- Total consignment sent = 100%
- Consignment sent on commission = 10%
- Goods sold = 67.5%
- Goods destroyed = 10% of consignment sent on commission
- Therefore, total goods sold by A = 67.5% + 90% of 10% = 68.5%
- Cost of goods sold by A = x
- Selling price = 1.25x
- Sales of 68.5% of goods = 1.48,148.15
- Cost of goods sold by A = (1.48,148.15/1.25) x (100/68.5) = Rs. 1,17,500
4. Calculation of commission payable to B:
- Commission payable to B = 0.31x - 9,259.26
- Cost of goods sold by A = Rs. 1,17,500
- Commission payable to
- Mumbai sold goods to Delhi
- Goods to be sold at 125% of cost (invoice price)
- Commission of 10% on sales at invoice price and 25% of any surplus realized above invoice price
- 10% of the goods sent out on consignment, invoice value of which is Rs. 12,500 were destroyed
- 75% of the total consignment is sold by B at Rs. 1,00,000
To find: Commission payable to B
Calculations:
1. Cost of goods sold by A to B:
- Let the cost price of goods sold by A to B be x
- Selling price (invoice price) = 125% of cost price = 1.25x
- Total consignment sent = 100%
- Consignment sent on commission = 10%
- Consignment sold by B = 75% of 90% (remaining after commission) = 67.5%
- Total sales by B = Rs. 1,00,000
- Sales of 67.5% of goods = Rs. 1,00,000
- Therefore, sales of 100% of goods = (100/67.5) x 1,00,000 = Rs. 1,48,148.15
- Cost of goods sold by A to B = x
- Selling price = 1.25x
- Surplus realized above invoice price = 1.48,148.15 - 1.25x
- Commission payable on sales at invoice price = 10% of 1.25x = 0.125x
- Commission payable on surplus realized above invoice price = 25% of (1.48,148.15 - 1.25x) = 0.185x - 9,259.26
- Total commission payable to B = Commission on sales at invoice price + Commission on surplus = 0.125x + 0.185x - 9,259.26 = 0.31x - 9,259.26
2. Value of destroyed goods:
- Invoice value of consignment sent on commission = Rs. 12,500
- 10% of these goods were destroyed = Rs. 1,250
- This value is borne by A and not included in commission payable to B
3. Total cost of goods sold by A:
- Total consignment sent = 100%
- Consignment sent on commission = 10%
- Goods sold = 67.5%
- Goods destroyed = 10% of consignment sent on commission
- Therefore, total goods sold by A = 67.5% + 90% of 10% = 68.5%
- Cost of goods sold by A = x
- Selling price = 1.25x
- Sales of 68.5% of goods = 1.48,148.15
- Cost of goods sold by A = (1.48,148.15/1.25) x (100/68.5) = Rs. 1,17,500
4. Calculation of commission payable to B:
- Commission payable to B = 0.31x - 9,259.26
- Cost of goods sold by A = Rs. 1,17,500
- Commission payable to
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Community Answer
A of Mumbai sold goods to B of Delhi, the goods are to be sold at 125%...
Here
given in question
10% good sent out on consignment, invoice value of which Rs 12500 were destoryed.
so, total good sent out on consignment in invoice price =12500×100/10
=Rs125000
sales (75% of 125000)=93750
10%on sale at IP=10% of 93750
= 9375
25% of surplus realized = 25% of (100000- 93750)
= 1562.5
Total commision payable= 9375+1562.5
= 10937.5
given in question
10% good sent out on consignment, invoice value of which Rs 12500 were destoryed.
so, total good sent out on consignment in invoice price =12500×100/10
=Rs125000
sales (75% of 125000)=93750
10%on sale at IP=10% of 93750
= 9375
25% of surplus realized = 25% of (100000- 93750)
= 1562.5
Total commision payable= 9375+1562.5
= 10937.5
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A of Mumbai sold goods to B of Delhi, the goods are to be sold at 125% of cost which is invoice price. Commission 10% on sales at invoice price and 25% of any surplus realized above invoice price. 10% of the goods sent out on consignment, invoice value of which is R.s 12,500 were destroyed. 75% of the total consignment is sold by B at Rs. 1,00,000. What will be the amount of commission payable to B?a)Rs. 10,937.50b)Rs. 10,000c)Rs. 9,000d)Rs. 9,700Correct answer is option 'A'. Can you explain this answer?
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A of Mumbai sold goods to B of Delhi, the goods are to be sold at 125% of cost which is invoice price. Commission 10% on sales at invoice price and 25% of any surplus realized above invoice price. 10% of the goods sent out on consignment, invoice value of which is R.s 12,500 were destroyed. 75% of the total consignment is sold by B at Rs. 1,00,000. What will be the amount of commission payable to B?a)Rs. 10,937.50b)Rs. 10,000c)Rs. 9,000d)Rs. 9,700Correct answer is option 'A'. Can you explain this answer? 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 of Mumbai sold goods to B of Delhi, the goods are to be sold at 125% of cost which is invoice price. Commission 10% on sales at invoice price and 25% of any surplus realized above invoice price. 10% of the goods sent out on consignment, invoice value of which is R.s 12,500 were destroyed. 75% of the total consignment is sold by B at Rs. 1,00,000. What will be the amount of commission payable to B?a)Rs. 10,937.50b)Rs. 10,000c)Rs. 9,000d)Rs. 9,700Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A of Mumbai sold goods to B of Delhi, the goods are to be sold at 125% of cost which is invoice price. Commission 10% on sales at invoice price and 25% of any surplus realized above invoice price. 10% of the goods sent out on consignment, invoice value of which is R.s 12,500 were destroyed. 75% of the total consignment is sold by B at Rs. 1,00,000. What will be the amount of commission payable to B?a)Rs. 10,937.50b)Rs. 10,000c)Rs. 9,000d)Rs. 9,700Correct answer is option 'A'. Can you explain this answer?.
A of Mumbai sold goods to B of Delhi, the goods are to be sold at 125% of cost which is invoice price. Commission 10% on sales at invoice price and 25% of any surplus realized above invoice price. 10% of the goods sent out on consignment, invoice value of which is R.s 12,500 were destroyed. 75% of the total consignment is sold by B at Rs. 1,00,000. What will be the amount of commission payable to B?a)Rs. 10,937.50b)Rs. 10,000c)Rs. 9,000d)Rs. 9,700Correct answer is option 'A'. Can you explain this answer? 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 of Mumbai sold goods to B of Delhi, the goods are to be sold at 125% of cost which is invoice price. Commission 10% on sales at invoice price and 25% of any surplus realized above invoice price. 10% of the goods sent out on consignment, invoice value of which is R.s 12,500 were destroyed. 75% of the total consignment is sold by B at Rs. 1,00,000. What will be the amount of commission payable to B?a)Rs. 10,937.50b)Rs. 10,000c)Rs. 9,000d)Rs. 9,700Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A of Mumbai sold goods to B of Delhi, the goods are to be sold at 125% of cost which is invoice price. Commission 10% on sales at invoice price and 25% of any surplus realized above invoice price. 10% of the goods sent out on consignment, invoice value of which is R.s 12,500 were destroyed. 75% of the total consignment is sold by B at Rs. 1,00,000. What will be the amount of commission payable to B?a)Rs. 10,937.50b)Rs. 10,000c)Rs. 9,000d)Rs. 9,700Correct answer is option 'A'. Can you explain this answer?.
Solutions for A of Mumbai sold goods to B of Delhi, the goods are to be sold at 125% of cost which is invoice price. Commission 10% on sales at invoice price and 25% of any surplus realized above invoice price. 10% of the goods sent out on consignment, invoice value of which is R.s 12,500 were destroyed. 75% of the total consignment is sold by B at Rs. 1,00,000. What will be the amount of commission payable to B?a)Rs. 10,937.50b)Rs. 10,000c)Rs. 9,000d)Rs. 9,700Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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A of Mumbai sold goods to B of Delhi, the goods are to be sold at 125% of cost which is invoice price. Commission 10% on sales at invoice price and 25% of any surplus realized above invoice price. 10% of the goods sent out on consignment, invoice value of which is R.s 12,500 were destroyed. 75% of the total consignment is sold by B at Rs. 1,00,000. What will be the amount of commission payable to B?a)Rs. 10,937.50b)Rs. 10,000c)Rs. 9,000d)Rs. 9,700Correct answer is option 'A'. Can you explain this answer?, a detailed solution for A of Mumbai sold goods to B of Delhi, the goods are to be sold at 125% of cost which is invoice price. Commission 10% on sales at invoice price and 25% of any surplus realized above invoice price. 10% of the goods sent out on consignment, invoice value of which is R.s 12,500 were destroyed. 75% of the total consignment is sold by B at Rs. 1,00,000. What will be the amount of commission payable to B?a)Rs. 10,937.50b)Rs. 10,000c)Rs. 9,000d)Rs. 9,700Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of A of Mumbai sold goods to B of Delhi, the goods are to be sold at 125% of cost which is invoice price. Commission 10% on sales at invoice price and 25% of any surplus realized above invoice price. 10% of the goods sent out on consignment, invoice value of which is R.s 12,500 were destroyed. 75% of the total consignment is sold by B at Rs. 1,00,000. What will be the amount of commission payable to B?a)Rs. 10,937.50b)Rs. 10,000c)Rs. 9,000d)Rs. 9,700Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A of Mumbai sold goods to B of Delhi, the goods are to be sold at 125% of cost which is invoice price. Commission 10% on sales at invoice price and 25% of any surplus realized above invoice price. 10% of the goods sent out on consignment, invoice value of which is R.s 12,500 were destroyed. 75% of the total consignment is sold by B at Rs. 1,00,000. What will be the amount of commission payable to B?a)Rs. 10,937.50b)Rs. 10,000c)Rs. 9,000d)Rs. 9,700Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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