Tag: commission,brokerage and discount

Questions Related to commission,brokerage and discount

Ram draws on Mohan a bill for Rs. 60,000 on April 1,2005, for two months. Mohan accepts the bill and sends it to Ram, who gets the bill discounted for Rs. 58,800. Ram remits Rs. 19,600 to Mohan. On the due date Ram being unable to remit due amount to Mohan, agrees to accept a bill for Rs. 84,000 for two months. This bill is discounted by Mohan, for Rs. 82,200. Mohan remits Rs. 14,800 to Ram. What will be the discount borne by Ram on second bill?

elements of book keeping and accountancy commission,brokerage and discount advantages of bill of exchange definition, characteristics and parties of bills of exchange simple transactions related to bills of exchange

  1. Rs. 1,200

  2. Rs. 1,800

  3. Rs. 1,100

  4. Rs. 800

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Correct Option: A

A shopkeeper may sell an article for less than the marked price for some reason. The difference between the marked price and the lowered selling price is called the ________.

business maths commission,brokerage and discount advantages of bill of exchange definition, characteristics and parties of bills of exchange simple transactions related to bills of exchange

  1. Commission

  2. Discount

  3. Selling price

  4. Cost

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Correct Option: A
Explanation:

discount

Tarun got $30%$ concession on the labelled price of an article and sold it for $Rs. 8750$ with $25%$ profit on the price he bought. What was the labelled price ?

business maths commission,brokerage and discount advantages of bill of exchange definition, characteristics and parties of bills of exchange simple transactions related to bills of exchange

  1. $Rs. 10,000$

  2. $Rs. 12,000$

  3. $Rs. 16,000$

  4. Data inadequate

  5. None of these

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Correct Option: A
Explanation:
Let the labelled price be $x$ Rs
$\therefore $ Price at which $=x-\dfrac{30}{10}\times x$
he bought $=\left(\dfrac{7x}{10}\right)$ Rs
Also profit is $25\%$
$\therefore  125\% $ of $\dfrac{7x}{10}=8750$ Rs
$\therefore \dfrac{5}{4}\times \dfrac{7x}{10}=8750$ Rs
$\therefore x=\dfrac{8750\times 4\times 10}{5\times 7}$
$\therefore x=10000$ Rs
$\therefore $ Labelled price is $10000$ Rs

An article marked at Rs. 450 is sold at a discount of 20%. Find the discount given,

business maths commission,brokerage and discount advantages of bill of exchange definition, characteristics and parties of bills of exchange simple transactions related to bills of exchange

  1. Rs. $90$

  2. Rs. $100$

  3. Rs. $110$

  4. Rs. $120$

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Correct Option: A
Explanation:

Discount $ = \dfrac {20}{100} \times 450 = Rs 90 $

A businessman marks his goods in such a way that even after allowing $12.5 \%$ discount on a cash purchase he gains $20 \%$. If the cost price is Rs. $140$, the marked price is

business maths commission,brokerage and discount advantages of bill of exchange definition, characteristics and parties of bills of exchange simple transactions related to bills of exchange

  1. Rs. $162$

  2. Rs. $172$

  3. Rs. $193$

  4. Rs. $192$

Show answer
Correct Option: D
Explanation:

Business man gains $20\%$ on his cost price, that means, he has sold his goods,
$140 + \dfrac{140\times20}{100} =$ Rs. $168$
Selling price $= 168$

Now, let marked price was Rs. $x$
According to question,
$x - \dfrac{12.5 x}{100} = 168$
$\Rightarrow\dfrac{100x - 12.5 x}{100} = 168$
$\Rightarrow 100x - 12.5 x = 16800$
$\Rightarrow 87.5 x = 16800$
$\Rightarrow x = \dfrac{16800}{87.5}$
$\Rightarrow x = 192$
So, marked price was Rs. $192$

A money lender finds that due to reducing the interest rate decrease from $8\%$ to $7\dfrac{3}{4}\%$, his yearly income diminishes by Rs. 61.50. His capital is 

business maths commission,brokerage and discount advantages of bill of exchange definition, characteristics and parties of bills of exchange simple transactions related to bills of exchange

  1. Rs. 22400

  2. Rs. 23800

  3. Rs. 24600

  4. Rs. 26000

Show answer
Correct Option: C
Explanation:
Difference in rate$=\left(8-7\dfrac{3}{4}\right)\%=\dfrac{1}{4}\%$
Let the capital be rate Rs.$x$
$\therefore  \dfrac{1}{4}\%$ of $x=61.50$
$\therefore x = 61.50\times 100\times 4$
     Rs$=24600$

Sheela is a salesperson at designer shop. she earns $35\%$ commission on her total sales. What would be her commission if she sells $4720$ rupees product at the shop?

business maths commission,brokerage and discount commission and rebate commission deductions from earnings

  1. $1204$

  2. $1240$

  3. $1652$

  4. $1450$

Show answer
Correct Option: C
Explanation:

Commission $=$ Amount of sales $\times$ rate of commission
Rate of commission $= 35\% = 0.35$
Amount of sales $= 4720$ rupees
substitute the values, we get
Commission $= 4720 \times  0.35$
$= 1652$ rupees

Commission $=$ Amount of sales $\times$ ________

business maths commission,brokerage and discount commission and rebate commission deductions from earnings

  1. loss

  2. profit

  3. rate of commission

  4. percentage

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Correct Option: C
Explanation:

Commission $=$ Amount of sales $\times$ rate of commission.
Example: rate of commission is $20$ rupees for each $2$ sales, how much commission will you get for $10$ sales?
Commission $= 10 \times  20 = 200$ rupees.

__________ is an earnings based on a percentage of the total amount of sales.

business maths commission,brokerage and discount commission and rebate commission deductions from earnings

  1. percentage

  2. profit

  3. commission

  4. loss

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Correct Option: C
Explanation:

Commission is earnings based on a percentage of the total amount of sales.
Example: a commission could be $5\%$ of sales, or $100$ rupees for each sale.

A salesman's terms were changed from a flat commission of 5 % on all his sales to a fixed salary of Rs. 1000 plus 2.5 % commission on all sales exceeding Rs. 4000. if his remuneration as per the new scheme was Rs. 600 more than by the first scheme. What were his sales worth?

business maths commission,brokerage and discount commission and rebate commission deductions from earnings

  1. Rs. 8000

  2. Rs. 10,000

  3. Rs. 12,000

  4. Rs. 15,000

Show answer
Correct Option: C
Explanation:

Let his sales were worth Rs. "x"
So $[1000\, +\, 2.5 \%\, \times\, (x\, -\, 4000) ]\, -\, 5\, \% \times\, x\, =\, 600$


$1000\, +\, \displaystyle \frac{1}{40}\, (x\, -\, 4000)\, -\, \displaystyle \frac{5}{100}\, \times\, x\, =\, 600$

$1000\, +\, \displaystyle \frac{x}{40}\, -\, 100\, -\, \displaystyle \frac{5x}{100}\, =\, 600\times x$


$x = Rs. 12,000$