# Calculation of Total sales

a) Credit sales (150 units @ â‚¹ 1,420 per unit) = 150 units X â‚¹ 1420 = â‚¹ 2,13,000

b) Cash sales (75 units @ â‚¹ 1,400 per unit) = 75 units X â‚¹ 1400 = â‚¹ 1,05,000

Therefore, total sales = â‚¹ 3,18,000

# Calculation of specified selling price:

Cost price of the goods sent = â‚¹ 1,000 per unit

Profit = 20% on sales

Specified selling price = x

By applying the formula CP + Profit = Selling price, we get â‚¹ 1,000 + 0.20x = x

Therefore, x â€“ 0.20x = â‚¹ 1,000

0.80x = â‚¹ 1,000

x = â‚¹ 1,000 / 0.80 = â‚¹ 1,250

Therefore, specified selling price = â‚¹ 1250

**Note:** Specified selling price is the price at which the consignor wants his goods to be sold by the consignee

# Calculation of sales at specified selling price

Quantity of goods sold = 225 units

Specified selling price = â‚¹ 1,250 per unit

Therefore sales at specified selling price = 225units X â‚¹ 1,250 = â‚¹ 2,81,250

This means to say that consignor was expecting â‚¹ 2,81,250 by selling 225 units. But these goods were sold for â‚¹ 3,18,000, which is more than the expectations and hence consignee is eligible for over-riding commission

# Calculation of Surplus:

Surplus = Actual sale proceeds â€“ sales at specified selling price= â‚¹ 3,18,000 (W. N. No.1) â€“ â‚¹ 2,81,250 (W. N. No.3)

= â‚¹ 36,750

Hence, consignee will be eligible for an over-riding commission of the surplus of â‚¹ 36,750

**Calculation of total commission:****Note:**Commission is always payable on the quantity of goods sold and not on quantity of goods sent and hence it should be calculated on 225 units and not on 250 units**Calculation of total commission:****Note:**Commission is always payable on actual total sale proceeds and not on sales at specified selling price or cost price**Calculation of total commission:****Note:**Unless specifically given, Del-credere commission should also be calculated on the total sales made by the consignee and not only on the credit sales**Calculation of total commission:****Calculation of total commission:****Calculation of total commission:****Calculation of total commission:**