Standard: SYJC

TIME–
SUBJECT – Maths MARKS - 25
Topic - Commission Brokerage & Discount Solution

Q.1.(a) Multiple choice questions : [2m]

1) The marked price Is also called as ________

(a) Cost price (b) Selling price
(c) list price (d) invoice price
Ans. (c) list price

2) When only one discount is given , then ________

(a) List price = Invoice price
(b) Invoice price = Net selling price
(c) Invoice price = Cost price
(d) Cost price = Net Selling price
Ans. (b) Invoice price = Net selling price

Q.1. (b) Fill in the blanks . [2m]

1) A person who draws the bill is called _________
Ans. drawer
2) An ______ is an agent who sells the goods by auction.
Ans. auctioneer

Q.1. (c) State whether each of the following is a True or False . [3m]
1) The buyer is legally allowed 6 days grace period.
Ans. False

2) The date on which the period of the bill expires is called the nominal due date.
Ans. True

3) The difference between the banker’s discount and true discount is called sum due.
Ans. False

Q.2. Solve the following problems: [18m]

1) A salesman gets a commission of 6.5% on the total sales made by him and bonus
of 1% on sales over ₹ 50,000. Find his total income on a turnover of ₹ 75,000.
[2m]
Sol. Rate of commission = 6.5% on the total sales
∴ Commission on a turnover of ₹ 75,000.

= × 75,000
= ₹ 4,875
Rate of bonus = 1% on sales over ₹ 50,000

∴ Amount of bonus = × (75,000 – 50,000)

= ₹ 250
∴ Total income of the salesman = ₹ 4,875 + ₹ 250 = ₹ 5,125
Thus , the agents gets 1,530 + 459 = ₹ 1,989
And the merchant receives 30,600 – 1,989 = ₹ 28,611
2) After deducting commission at 7 % on first ₹ 50,000 and 5% on balance of
sales made by him, an agent remits ₹ 93,750 to his principal . Find the value of
goods sold by him.
[2m]

Sol. Rate of commission = 7 % on first ₹ 50,000

= × 50,000 = ₹ 3,750
Let the total sales be ₹ x
Rate of commission on the balance sales = 5%

∴ Commission on the balance sales = × (x – 50,000)

= - 2,500

Total commission = 3,750 + - 2,500

= + 1,250
The amount to be remitted to the principal
= Value of goods sold – Commission of the agent

=x-

= - 1,250

∴ = 95,000

∴ x = 95,000 ×
∴ x = ₹ 1,00,000
Thus , the value of the goods sold by the agent is Rs.1,00,000.

3) The present worth of ₹ 11,660 due 9 months hence is ₹ 11,000. Find the rate of
interest. [2m]
Sol. Given : PW = ₹ 11,000 , SD = ₹ 11,660

n= years = years
We have

SD = PW

∴ 11,660 = 11,000

∴ 11,660 = 11,000
 ∴ =1+

∴ = -1

∴ =

∴r=8
∴r=

∴ The rate of interest is 8% p.a.

4) A salesman is paid fixed monthly salary plus commission on the sales. If on sale
of ₹ 96,000 and ₹ 1,08,000 in two successive months he receives in all ₹ 17,600
and ₹ 18,800 respectively. Find his monthly salary and rate of commission paid to
him. [2m]
Sol. Let the monthly sales of the salesman be Rs. x and the rate of commission be y %
Income = monthly salary + commission on the sales

∴ 17,600 = x + × 96,000
∴ 17,600 = x + 960y ……….. (1)

And 18,800 = x + × 1,08,000

∴ 18,800 = x + 1,080y ……… (2)
Subtracting equation (1) from equation (2) ,
We get

∴ y = 10
1,200 = 120y

Substituting y = 10 in equation (1) , we get

∴ x = 17,600 – 9,600
17,600 = x + 960 (10)

∴ Salary of the salesman is ₹ 8,000 and rate of commission is 10%.

= 8,000

5) A manufacturer makes clear profit of 30% on cost after allowing 35% discount. If
the cost of production rises by 20% , by what percentage should he reduce the
rate of discount so as to make the same rate of profit keeping his list prices
unaltered. [2m]
Sol. Rate of discount = 35%
Let the list price be ₹ 100.
Then discount at 35% = ₹ 35
∴ Net selling price 100 – 35 = ₹ 65 ……… (1)
The manufacturer makes clear profit of 30% on cost after allowing 35% discount.
Let the cost be ₹ 100
Then selling price at 30% profit is 100 + 30 = ₹ 130
i.e. if net selling price is ₹ 130, then the cost price is ₹ 100
But , the net selling price is ₹ 130 , then the cost price is ₹ 65 ….. [From (1)]

∴ The cost price is × 100 = ₹ 50

We have
Original List Price Original Selling price New Cost Price
₹ 100 ₹ 65 ₹ 50
 Now , the cost of production has increased by 20%

∴ The new cost price is ₹ 120.

Let the old cost price be ₹ 100

But , the old cost price is ₹ 50

∴ The new cost price = × 120 = ₹ 60

Old net price is ₹ 65.

∴ New net price = 65 + 13 = ₹ 78

Now , 20% of ₹ 65 = × 65 = ₹ 13

Hence , we have
New List Price New Selling price New Cost Price
₹ 100 ₹ 78 ₹ 65
Now , 100 – 78 = ₹ 22
Thus, the rate of discount should be reduced by 22% , if the original rate of
discount is 35%.
Hence , the reduction in discount should be (35 – 22) % = 13% so as to make the
same rate of profit , keeping the list price unaltered.

6) A trader offers 25% discount on the catalogue price of a radio and yet makes 20%
profit. If he gains ₹ 160 per radio , what must be the catalogue price of the radio ?
[2m]
Sol. Rate of discount = 25% on the catalogue price of a radio.
Let the catalogue price of a radio be Rs.100
Then the discount on a radio = ₹ 25
Net Selling price = 100 – 25 = ₹ 75
He makes a profit be 20%.
Let the cost price be ₹ 100.
Then , at 20% profit , net selling price = ₹120
Thus , if net SP is ₹ 120 , then cost price is ₹ 100
But, the net SP is ₹ 75

∴ The cost price =

∴ Profit on a radio set = 75 – 62.5 = ₹ 12.50
× 100 = = ₹ 62.50

Thus , if the profit on a radio set is ₹ 12.50 ,

Then its catalogue price is ₹ 100.

∴ The catalogue price of a radio

But the profit on a radio set is ₹ 160

= × 100
= 12.80 × 100
= ₹ 1,280
Thus , the catalogue price of a radio is ₹ 1,280

7) A bill of Rs. 4,800 was drawn on 9 th March 2006 at 6 months and was discounted

on 19th April 2006 for 6 % p.a. How much does the banker charge and how
much does the holder receive ?
[2m]
Sol. Face value of the bill = ₹ 4,800
Date of drawing = 9th March , 2006
Period of the bill = 6 months
Normal due date = 9th September , 2006
 Legal due date = 12th September , 2006

Rate of discount = 6 % = 6.25%

Now, for the unexpired
Apr Ma Jun Jul Aug Sep Total
y t
11 31 30 31 31 12 146 days

BD =

=
= ₹ 120
Thus, the banker charges ₹ 120.
Amount received by the holder = 4,800 – 120 = ₹ 4,680.

8) An agent sold a car and charged 3% commission on sale value. If the owner of the
car received Rs. 48,500 , find the sale value of the car. If the agent charged 2%
from the buyer, find his total remuneration . [2m]
Sol. Let the sale value of the car be ₹ x
Rate of commission of the agent = 3%
Since, the owner received ₹48,500 after agent has charged his commission.

∴x- = 48,500

∴ = 48,500

∴x=
∴ x = ₹ 50,000
∴ Sale value of the car = ₹ 50,000
Against commission received from the owner

= × 50,000 = ₹ 1,500
Against commission received from the buyer

∴ Agent’s total remuneration = 1,500 + 1,000 = ₹ 2,500.

= × 50,000 = ₹ 1,000

9) An agent is paid a commission of 4% on cash sales and 6% on credit sales made by him.
If on the sale of ₹ 51,000 the agent claims a total commission of ₹ 2,700 , find the sales
made by him for cash and on credit. [2m]
Sol. Total sales = ₹ 51,000

∴ Credit sales = ₹ (51,000 – x)

Let cash sales be ₹ x.

Agent’s commission on cash sales = 4% on x

= ×x=
***All the Best***