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In a Joint venture A contributes Rs 5000 and B contributes Rs 10000. Goods are purchased for Rs 11200. Expenses amount to Rs 800. Sales amount to Rs 14000 the remaining goods were taken by B at an agree price of Rs 400. A and B share profit and losses in the ratio of 1:2 respectively. As a final settlement, how much A will receive?
  • a)
    5800
  • b)
    6000
  • c)
    5000
  • d)
    10800
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
In a Joint venture A contributes Rs 5000 and B contributes Rs 10000. G...
Given data:
- Joint venture between A and B
- A contributes Rs 5000
- B contributes Rs 10000
- Goods purchased for Rs 11200
- Expenses amount to Rs 800
- Sales amount to Rs 14000
- Remaining goods taken by B at an agreed price of Rs 400
- Profit and losses shared in the ratio of 1:2 respectively

To find: How much A will receive as final settlement

Calculation:
- Total amount invested = Rs 5000 + Rs 10000 = Rs 15000
- Total cost of goods and expenses = Rs 11200 + Rs 800 = Rs 12000
- Total sales revenue = Rs 14000 + Rs 400 = Rs 14400
- Total profit = Total sales revenue - Total cost of goods and expenses = Rs 2400
- Profit to be shared in the ratio of 1:2 = Rs 800 and Rs 1600 respectively
- A's share of profit = Rs 800
- A's total amount received = A's share of profit + A's initial investment = Rs 800 + Rs 5000 = Rs 5800

Therefore, the correct answer is option A) 5800.
Free Test
Community Answer
In a Joint venture A contributes Rs 5000 and B contributes Rs 10000. G...
A CONTRIBUTION IS RS.5,000
B CONTRIBUTION IS RS.10,000
THEIR PURCHASES IS RS.11,200 & EXPENSES IS RS.800
TOTAL COST OF PURCHASE IS RS.12,000
THEIR SALES IS RS.14,000 & B TAKEN GOODS FOR RS.400
TOTL SALES IS RS.14,400
THEIR PROFIT IS RS.2,400
THEIR AGREED RATIO IS 1:2
SO A'S PROFIT IS RS.800
AND B'S PROFIT IS RS. 1,600
SO THEN A WILL RECEIVE THE CONTRIBUTION AMOUNT
RS.5,000
AND THE PROFIT AMOUNT IS RS.800
SO THE TOTAL AMOUNT A WILL RECEIVE OF RS.5,800
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In a Joint venture A contributes Rs 5000 and B contributes Rs 10000. Goods are purchased for Rs 11200. Expenses amount to Rs 800. Sales amount to Rs 14000 the remaining goods were taken by B at an agree price of Rs 400. A and B share profit and losses in the ratio of 1:2 respectively. As a final settlement, how much A will receive?a)5800b)6000c)5000d)10800Correct answer is option 'A'. Can you explain this answer?
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In a Joint venture A contributes Rs 5000 and B contributes Rs 10000. Goods are purchased for Rs 11200. Expenses amount to Rs 800. Sales amount to Rs 14000 the remaining goods were taken by B at an agree price of Rs 400. A and B share profit and losses in the ratio of 1:2 respectively. As a final settlement, how much A will receive?a)5800b)6000c)5000d)10800Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about In a Joint venture A contributes Rs 5000 and B contributes Rs 10000. Goods are purchased for Rs 11200. Expenses amount to Rs 800. Sales amount to Rs 14000 the remaining goods were taken by B at an agree price of Rs 400. A and B share profit and losses in the ratio of 1:2 respectively. As a final settlement, how much A will receive?a)5800b)6000c)5000d)10800Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In a Joint venture A contributes Rs 5000 and B contributes Rs 10000. Goods are purchased for Rs 11200. Expenses amount to Rs 800. Sales amount to Rs 14000 the remaining goods were taken by B at an agree price of Rs 400. A and B share profit and losses in the ratio of 1:2 respectively. As a final settlement, how much A will receive?a)5800b)6000c)5000d)10800Correct answer is option 'A'. Can you explain this answer?.
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