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Mathematics and Statistics · Class 12 Commerce

Ch 9Commission, Brokerage and Discount — Class 12 Mathematics and Statistics, concept-first.

Much of trade is not carried on by the owner of the goods directly but through middlemen who bring buyers and sellers together and are paid for the service. This chapter studies how such payment is calculated, and how the sums due on credit transactions and on bills of exchange are worked out.

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Key concepts

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Bills of Exchange and Banker's Discount

The unexpired period runs to the legally-due date (nominal due date + 3 grace days). True discount is interest on present worth; banker's discount is interest on face value; banker's gain .

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Chapter contents

The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.

1

Commission and Brokerage

Much of trade is not carried on by the owner of the goods directly but through middlemen who bring buyers and sellers together and are paid for the service.

2

Del Credere Agent and Del Credere Commission

When goods are sold on credit there is always a risk that some buyers will fail to pay — a bad debt. An ordinary agent does not bear this risk; if a credit customer defaults, the loss falls on the pri…

3

Trade Discount and Cash Discount

Manufacturers and wholesalers print a list price (also called the catalogue price or marked price, M.P.) on their goods.

4

Successive Discounts

Sometimes two (or more) discounts are offered one after another on the same article — for example "20% off, and a further 10% off". These are successive discounts.

5

Bills of Exchange — Face Value, Due Date and Days of Grace

A bill of exchange is a written, signed order by which one person (the drawer) directs another (the drawee) to pay a stated sum of money after a fixed period.

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True Discount, Banker's Discount and Banker's Gain

When a bill is discounted before maturity, the holder receives less than the face value, because money received now is worth more than the same money later.

Exercises

+Show 2 questions2 questions
  1. Q13The banker's discount and the true discount on a certain bill are ₹1,020 and ₹1,000 respectively. Find (i) the banker's gain and (ii) the fa…Free
  2. Q14The banker's gain on a bill is equal to which of the following? (A) Banker's discount − True discount (B) Banker's discount + True discount…Preview

Sample & Board Papers

Sample papers and previous-year board questions for this subject.

+Show 21 questions21 questions
  1. Q1The difference between face value and present worth is called ______. (a) Banker’s discount (b) True discount (c) Banker’s gain (d) Cash val…Preview
  2. Q2A wholesaler allows a 25% trade discount and a 5% cash discount. The net price of an article marked at ₹ 1,600 is ______.Preview
  3. Q3A bill was drawn on 14th April 2005 for ₹ 3,500 and was discounted on 6th July 2005 at 5% per annum. The banker paid ₹ 3,465 for the bill. F…Preview
  4. Q4The sum due is also called as ______. (a) Face value (b) Present value (c) Cash value (d) True discountPreview
  5. Q5The banker’s discount is also called true discount. (a) True (b) FalsePreview
  6. Q6The date by which the buyer is legally allowed to pay the amount is known as _______.Preview
  7. Q7An agent places insurance for ₹ 4,00,000 on life of a person. The premium is to be paid annually at the rate of ₹ 35 per thousand per annum.…Preview
  8. Q8An agent was paid ₹ 88,000 as a commission on the sales of computers at the rate of 12.5%. If the price of each computer was ₹ 32,000, how m…Preview
  9. Q9The difference between face value and present worth is called ______. (a) Banker’s discount (b) True discount (c) Banker’s gain (d) Cash val…Preview
  10. Q10Broker is an agent who gives a guarantee to seller that the buyer will pay the sale price of goods. (a) True (b) FalsePreview
  11. Q11The banker’s discount is always _______ than the true discount.Preview
  12. Q12Deepak’s salary was increased from ₹ 4,000 to ₹ 5,000. The sales being the same, due to reduction in the rate of commission from 3% to 2%, h…Preview
  13. Q13An agent who gives a guarantee to his principal that the party will pay the sale price of goods is called ______. (a) Auctioneer (b) Del cre…Preview
  14. Q14The amount paid to the holder of the bill after deducting banker's discount is known as ______.Preview
  15. Q15A bill of ₹ 18,000 was discounted for ₹ 17,568 at a bank on 25th October 2017. If the rate of interest was 12% p.a., what is the legal due d…Preview
  16. Q16The difference between face value and present worth is called ______. (a) Banker’s discount (b) True discount (c) Banker’s gain (d) Cash val…Preview
  17. Q17State whether the following statement is True or False. The banker’s discount is always lower than the true discount. (a) True (b) FalsePreview
  18. Q18The difference between the banker’s discount and the true discount is called ______.Preview
  19. Q19The true discount on a sum is $\frac{3}{8}$ of the sum due at 12% p.a. Find the period of the bill.Preview
  20. Q20An agent was paid ₹58,500 as commission on the sale of computers at the rate of 12.5%. If the price of each computer was ₹18,000, how many c…Preview
  21. Q21A bill of ₹4,000 drawn on 5th January, 1998 for 8 months was discounted for ₹3,840 on a certain date. Find the date on which it was discount…Preview

More questions

+Show 12 questions12 questions
  1. Example 1An agent sells goods worth ₹75,000 on behalf of his principal and is paid commission at the rate of 4%. Find the commission the agent earns.Free
  2. Example 2A broker arranges the sale of a plot of land for ₹12,50,000 and charges brokerage at 1.5% from each of the buyer and the seller. Find (i) th…Free
  3. Example 3An agent received ₹4,200 as commission on sales of ₹1,05,000. Find the rate of commission.Free
  4. Example 4An agent is paid ordinary commission at 5% and del credere commission at 2% on the total sales he transacts. During a month he sold goods wo…Preview
  5. Example 5A del credere agent is paid ordinary commission at 4% and del credere commission at 1% on his total sales of ₹3,00,000. During the period, b…Preview
  6. Example 6The list price of a television set is ₹32,000. A dealer is allowed a trade discount of 15%. Find the trade discount and the invoice price.Preview
  7. Example 7A retailer buys goods with a list price of ₹40,000. He is allowed a trade discount of 20% and, for paying immediately, a cash discount of 5%…Preview
  8. Example 8Find the single discount equivalent to two successive discounts of 20% and 10%.Preview
  9. Example 9The marked price of a set of furniture is ₹25,000. A shop offers successive discounts of 10% and 5%. Find (i) the selling price and (ii) the…Preview
  10. Example 10A bill drawn on 5th March 2024 is payable 3 months after date. Find its nominal due date and its legally-due date.Preview
  11. Example 11Find the true discount and the present worth of a bill of ₹10,400 due 6 months hence, the rate of interest being 8% per annum.Preview
  12. Example 12For the bill of ₹10,400 due 6 months hence at 8% per annum (present worth ₹10,000, true discount ₹400), find (i) the banker's discount, (ii)…Preview