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Commission and Brokerage
Definition
• When persons get their work done through
some other person then that person is called
an agent.
• The money paid to an agent is called
commission
• Commission is charged on the selling price at a
predetermined rate percent
• The person who appoints the agent is called
principal
Definition
• A person who works as a medium between
the desirous purchasers and sellers is called a
broker. He charges brokerage from the
purchaser or seller or both for his work
• A person that helps in selling the goods on
credit and takes responsibility to collect this
amount is called Del-credere agent. If the
amount is not collected the agent will have to
pay from his side to the principal
Del-credere agent
• For the risk taken by him he gets additional
commission on credit sales called del-credere
commission
• General commission is calculated on total
(cash + credit) sales
Bonus
• When the sales by an agent are more than the
target, he is given an additional amount called
bonus
Thank You

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Commission and Brokerage.pptx

  • 2. Definition • When persons get their work done through some other person then that person is called an agent. • The money paid to an agent is called commission • Commission is charged on the selling price at a predetermined rate percent • The person who appoints the agent is called principal
  • 3. Definition • A person who works as a medium between the desirous purchasers and sellers is called a broker. He charges brokerage from the purchaser or seller or both for his work • A person that helps in selling the goods on credit and takes responsibility to collect this amount is called Del-credere agent. If the amount is not collected the agent will have to pay from his side to the principal
  • 4. Del-credere agent • For the risk taken by him he gets additional commission on credit sales called del-credere commission • General commission is calculated on total (cash + credit) sales
  • 5. Bonus • When the sales by an agent are more than the target, he is given an additional amount called bonus