Question 1

Question 1: An agent charges a 12% commission on the sales. What does he earn if the total sale amounts to ₹ 48,000? What does the seller get?

Accepted Answer

Rate of commission = 12% Total sales = ₹ 48,000 Agent’s commission = × 48,000 = ₹ 5,760 Amount received by the seller = Total sales – commission = ₹ 8,000 – ₹ 5760 = ₹ 2,240

Question 2

Question 2: A salesman receives a 3% commission on sales up to ₹ 50,000 and a 4% commission on sales over ₹ 50,000. Find his total income on the sale of ₹ 2,00,000.

Accepted Answer

Total sales = ₹ 2,00,000 Rate of commission upto ₹ 50,000 = 3% = × 50,000 = ₹ 1,500 Rate of commission on the sales over ₹ 50,000 = 4% Sales over ₹ 50,000 is 2,00,000 – 50,000 = ₹ 1,50,000 Commission on sales over ₹ 50,000 = × 1,50,000 = ₹ 6,000 His total income = ₹ 1,500 + ₹ 6,000 = ₹ 7,500

Question 3

Question 3: Ms. Saraswati was paid ₹ 88,000 as commission on the sale of computers at the rate of 12.5%. If the price of each computer was ₹ 32,000, how many computers did she sell?

Accepted Answer

Total commission = ₹ 88,000 Rate of commission = 12.5% Let the number of computers sold be x since price of each computer = ₹ 32,000 Total sales = ₹ 32,000x Total commission = 12.5% of total sales 88,000 = × 32,000x = × 32,000x x = x = 22

Question 4

Question 4: Anita is allowed 6.5% commission on the total sales made by her, plus, a bonus of % on the sale over ₹ 20,000. If her total commission amounts to ₹ 3,400. Find the sales made by he

Accepted Answer

Let the total sales made by Anita be ₹ x Rate of commission = 6.5% of total sales = = =

Question 5

Question 5: Priya gets a salary of ₹ 15,000 per month and a commission of 8% on sales over ₹ 50,000. If she gets ₹ 17,400 in a certain month. Find the sales made by her in that month.

Accepted Answer

Let the total sales made by Priya be ₹ x Salary of Priya = ₹ 15,000 Commission = Total earning – salary = ₹ 17,400 – ₹ 15,000 = ₹ 2,400 Commission = 8% on the sales over ₹ 50,000 2400 = (x – 50000) = x – 50,000 30,000 = x – 50,000 30,000 + 50,000 = x ∴ x = ₹ 80,000

Question 6

Question 6: The income of the broker remains unchanged though the rate of commission is increased from 4% to 5%. Find the percentage reduction in the value of the business.

Accepted Answer

Let the original value of business be ₹ 100 Original rate of commission = 4% ∴ Original commission = × 100 = ₹ 4 Let the new value of business be ₹ x The new rate of commission = 5% ∴ New commission = × x = Given, original income = New income 4 = ∴ x = ₹ 80 Thus there is 20% reduction in the value o

Question 7

Question 7: Mr. Pavan is paid a fixed weekly salary plus commission based on a percentage of sales made by him. If on the sale of ₹ 68,000 and ₹ 73,000 in two successive weeks, he received in

Accepted Answer

Let the weekly salary of Mr. Pavan be ₹ x and the rate of commission paid to him be y% Income = Weekly salary + Commission on the sales ∴ 9,880 = x + × 68,000 i.e. 9,880 = x + 680y …….(1) Also, 10,180 = x + × 73,000 i.e 10,180 = x + 730y ………(2) Subtracting (1) from (2), we get 50y = 300 ∴ y = 6 Subs

Question 8

Question 8: Deepak’s salary was increased from ₹ 4,000 to ₹ 5,000. The sales being the same, due to a reduction in the rate of commission from 3% to 2%, his income remained unchanged. Find his

Accepted Answer

Let Deepak’s total sales be ₹ x Original salary of Deepak = ₹ 4,000 Original rate of commission = 3% His new salary = ₹ 5,000 New rate of commission = 2% Original income = New income (given) 4000 + = 5000 + = 5,000 – 4,000 = 1000 x = ₹ 1,00,000 ∴ His total sales = ₹ 1,00,000

Question 9

Question 9: An agent is paid a commission of 7% on cash sales and 5% on credit sales made by him. If on the sale of ₹ 1,02,000 the agent claims a total commission of ₹ 6,420, find his cash sal

Accepted Answer

Total Sales = ₹ 1,02,000 Let cash sales ₹ x ∴ Credit sales = ₹ (1,02,000 – x) Agent’s commission on cash sales = 7% = × x = Commission on credit sales = 5% = (1,02,000 – x) Given, Total commission = ₹ 6,420 ∴ + (1,02,000 – x) = 6420 ∴ + 5100 – = 6,420 ∴ = 6,420 – 5,100 ∴ = 1320 ∴ x = ₹ 66,000 ∴ Cash

Question 10

Question 10: Three cars were sold through an agent for ₹ 2,40,000, ₹ 2,22,000 and ₹ 2,25,000 respectively. The rates of the commission were 17.5% on the first, 12.5% on the second. If the agent

Accepted Answer

Total selling price of three cars = 2,40,000 + 2,22,000 + 2,25,000 = ₹ 6,87,000 Commission on total sales = 14% = × 6,87,000 = ₹ 96,180 Selling price of first car = ₹ 2,40,000 Rate of commission = 17.5% = × 2,40,000 ∴ Commission on first car = ₹ 42,000 Selling price of second car = ₹ 2,22,000 Rate o

Question 11

Question 11: Swatantra Distributors allows a 15% discount on the list price of the washing machines. Further 5% discount is giver for cash payment. Find the list price of the washing machine if

Accepted Answer

Let the list price of the washing machine be ₹ 100 Trade discount = 15% = × 100 = ₹ 15 ∴ Invoice price =100 – 15 = ₹ 85 Cash discount = 5% = × 85 = ₹ 4.25 ∴ Net price = 85 – 4.25 = ₹ 80.75 Thus if List price is 100 than Net price is 80.75 if List price is x than Net price is 38,356.25. ∴ x = ∴ x = ₹

Question 12

Question 12: A bookseller received ₹ 1,530 as a 15% commission on the list price. Find the list price of the books.

Accepted Answer

Let the list price of the books be ₹ x Rate of commission = 15% Book seller’s commission = ₹ 1,530 ∴ × x = 1,530 ∴ x = ∴ x = ₹ 10,200

Question 13

Question 13: A retailer sold a suit for ₹ 8,832 after allowing an 8% discount on market price and a further 4% cash discount. If he made 38% profit, find the cost price and the market price of

Accepted Answer

Let the marked price of the suit be ₹ 100 Trade discount = 8% = × 100 = ₹ 8 Invoice price = 100 – 8 = ₹ 92 Cash discount = 4% = × 92 = ₹ 3.68 ∴ Net price = 92 – 3.68 = ₹ 88.32 Thus if list price is 100 then net price is 88.32, if list price is x then net price is 8,832 ∴ x = ∴ x = ₹ 10,000 The retai

Question 14

Question 14: An agent charges 10% commission plus 2% delcredere. If he sells goods worth ₹ 37,200, find his total earnings.

Accepted Answer

Total sales = ₹ 37,200 Rate of commission = 10% Agents commission = × 37200 = ₹ 3720 Rate of delcredere = 2% Amount of delcredere = × 37,200 = ₹ 744 Total earning of the agent = ₹ 3,720 + ₹ 744 = ₹ 4,464

Question 15

Question 15: A whole seller allows a 25% trade discount and 5% cash discount. What will be the net price of an article marked at ₹ 1600?

Accepted Answer

Marked price of the article = ₹ 1,600 Trade discount = 25% = × 1,600 = ₹ 400 ∴ Invoice price = 1,600 – 400 = ₹ 1,200 Cash discount = 5% = × 1,200 = ₹ 60 ∴ Net price = 1,200 – 60 = ₹ 1,140

Chapter 1 Commission, Brokerage and Discount Ex 1.1 Solutions