Question

Question 4: A consignee is entitled to
a 10% ordinary and a 5% delcredere
commission. If cash sales are Rs.
50,000 and credit sales are Rs.25,000,
the total commission would be:​

Answer 1

Given : A consignee is entitled to a 10% ordinary and a 5% del credere

commission.

cash sales are Rs. 50,000 and credit sales are Rs.25,000,

To Find : the total commission

Solution:

Del credere commission is related to credit sales.

cash sales are Rs. 50,000

consignee is entitled to a 10% ordinary  commission

Hence  commission = (10/100) 50000 = 5000 Rs

credit sales are Rs.25,000,

consignee is entitled to  5% del credere commission.

Hence commission  = (5/100) 25000 = 1250 Rs

Total Commission = 5000 + 1250  = Rs 6250

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