Consignment Accounting Foundation Course

A sends out goods costings Rs. 80000 to B. 4/5th of the goods were sold by consignee for Rs.70000. Commission 2% on sales plus 20% on gross sales less all commission exceeds cost price. The amount of commission will be ?How to get the commission?

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Your Answer

let commission be x x = 2%(sale) + 20% (gross sale -cost price -x) = 2%(70000) + 20% (70000-64000-x) = 1400 + 1200 -0.2x 1.2x = 2600 x = 2167

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