X sent out 1,000 units to y @ Rs.125 each .The proforma invoice was made by adding 25% to cost , X expenses Rs.20,000 , X drew upon Y a bill as a security for an amount equivalent to 60% of the invoice value for 3 months .the acceptance was discounted @ 18% p.a. , 20% of the goods were still in transit , Y incurred Rs.4,000 towards transportation upto godown & Rs.5,000 as insurance premium etc. , 60% of the goods received was sold by at 20% above the invoice price.Half of the sales were on credit .one credit customer to whom 100 units were sold became insolvent & paid only 60 paise in a rupee , 40% of the balance goods,were destroyed in y's godown & insurance co.paid Rs.15,000 .Rate of commission -normal commission @ 8% on sales at invoice price , del-credere commission @ 2% on sales at a invoice price .extra commission @ 30 % of the surplus over invioce value +20% of gross sales less all commission exceeds invoice value , net balance after adjusting proportionate security was remitted .original cost of goods sent is
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