Q.B, acting as C's consignee, sold the entire consignment of goods for ₹80,000, and is entitled to an ordinary commission of 5% on sales, with no del credere or over-riding commission agreed. Calculate the commission due to B.

With only an ordinary commission agreed, it is simply a percentage of the total (gross) sale proceeds.

Ordinary commission is calculated as a straightforward percentage of the total (gross) sale proceeds, regardless of how many individual sales made up that total, and regardless of whether any of it was on credit:

Commission = Total sale proceeds × Rate of commission = 80,000 × 5% = ₹4,000. …

Students occasionally try to calculate commission on the consignor's cost of the goods rather than on the actual sale proceeds realised — ordinary commission is always a percentag …