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P and q enter into a joint venture sharing profit and losses in the ratio 3:2 . P Purachsed goods costing 200000 other expenses of p 10,000 q sold the goods for 180000 remaining goods were taken over by q at 20,000 the amount of final remittance to be paid by q to p will be?
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P and q enter into a joint venture sharing profit and losses in the ra...
Calculation of Final Remittance to be Paid by Q to P

Given information:
- Joint venture between P and Q
- Profit and loss sharing ratio of 3:2
- Goods purchased by P for 200000
- Other expenses of P 10000
- Goods sold by Q for 180000
- Remaining goods taken over by Q for 20000

Total cost incurred by P = 200000 + 10000 = 210000
Total revenue earned by joint venture = 180000 + 20000 = 200000

Calculation of Profit or Loss:
Total revenue earned by joint venture = 200000
Total cost incurred by joint venture = 210000
Loss incurred by joint venture = 10000

Calculation of Profit or Loss sharing:
P's share = 3/5 * 10000 = 6000
Q's share = 2/5 * 10000 = 4000

Calculation of Final Remittance:
Q needs to pay P's share of the loss, which is 6000.
Therefore, the final remittance to be paid by Q to P will be 6000.

Explanation:
- Joint venture is a partnership between two or more parties to carry out a specific business project.
- In this case, P and Q entered into a joint venture with a profit and loss sharing ratio of 3:2, which means that P will get 3/5 of the profit or bear 3/5 of the loss, and Q will get 2/5 of the profit or bear 2/5 of the loss.
- P purchased goods for 200000 and incurred other expenses of 10000, making the total cost incurred by P 210000.
- Q sold goods for 180000 and took over the remaining goods for 20000, making the total revenue earned by the joint venture 200000.
- The joint venture incurred a loss of 10000, which will be shared by P and Q based on their profit and loss sharing ratio.
- P's share of the loss is 6000, and Q's share of the loss is 4000.
- Q needs to pay P's share of the loss, which is 6000, as the final remittance.
Community Answer
P and q enter into a joint venture sharing profit and losses in the ra...
Profit on Joint Venture= (10000)ie. loss
THIS LOSS WILL BE BORNED BY P= 6000
Q =4000(In the ratio 3:2)
To understand better draw P' s account...
which will have DEBIT 6000 (LOSS)and CREDIT 200000+10000 (PURCHASE+EXPENSES).....NET BALANCE AFTER DEDUCTING LOSS IN P's account = 204000 WHICH IS THE AMOUNT OF REMITTANCE. HOPE THIS HELPS.
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P and q enter into a joint venture sharing profit and losses in the ratio 3:2 . P Purachsed goods costing 200000 other expenses of p 10,000 q sold the goods for 180000 remaining goods were taken over by q at 20,000 the amount of final remittance to be paid by q to p will be?
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P and q enter into a joint venture sharing profit and losses in the ratio 3:2 . P Purachsed goods costing 200000 other expenses of p 10,000 q sold the goods for 180000 remaining goods were taken over by q at 20,000 the amount of final remittance to be paid by q to p will be? 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 P and q enter into a joint venture sharing profit and losses in the ratio 3:2 . P Purachsed goods costing 200000 other expenses of p 10,000 q sold the goods for 180000 remaining goods were taken over by q at 20,000 the amount of final remittance to be paid by q to p will be? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for P and q enter into a joint venture sharing profit and losses in the ratio 3:2 . P Purachsed goods costing 200000 other expenses of p 10,000 q sold the goods for 180000 remaining goods were taken over by q at 20,000 the amount of final remittance to be paid by q to p will be?.
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