Accountancy, asked by Anilkumarchidirika, 1 year ago

how to find out commission percentage in consignment

Answers

Answered by cutipie13
3
The consignee, selling the goods on consignment basis is entitled, as remuneration, to a commission on sales. This commission may take different forms depending on the agreement between the Consignor and the Consignee.

The principal agent relationship between the Consignor and the Consignee is guided by the agreement between them. The type of commissions and the method to be adopted for their calculation would also be specified by the agreement.

In general we come across the following types of commissions

Ordinary CommissionDel Credere CommissionOverriding CommissionSpecial Commission

Calculation of commission

Where there is a specific method agreed upon to calculate a type of commission, that has to be followed.

No commission can be calculated without the information relating to the basis for calculation




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Anilkumarchidirika: suppose Gross proceeds 48,145 @5% commission
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