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A and B were partners in a joint venture sharing profits and losses in the proportion of 4:1 respectively. A supplies goods to the value of Rs.50000 and incurs expenses amounting to Rs.5400. B supplies goodsto the value of Rs.14000 and expenses of Rs.800.B sells good on behalf of the joint venture and realizes Rs.92000.B is entitled to a commissionof 5% on sales.B settles his account by bank draft. What will be the final remittance? Answer: B will remit Rs.69160 to A?
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A and B were partners in a joint venture sharing profits and losses in...
Calculation of Profit and Loss
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Total value of goods supplied by A = Rs. 50000
Total value of expenses incurred by A = Rs. 5400
Total value of goods supplied by B = Rs. 14000
Total value of expenses incurred by B = Rs. 800
Total value of sales made by joint venture = Rs. 92000
Commission earned by B @ 5% = Rs. (92000*5/100) = Rs. 4600
Total expenses incurred by joint venture = Rs. (5400+800+4600) = Rs. 10800
Total profit earned by joint venture = Rs. (92000-50000-14000-10800) = Rs. 17200
Profit and Loss Distribution
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As per the profit and loss sharing ratio of 4:1, the profits of Rs. 17200 will be distributed as follows:
A's share = Rs. (17200*4/5) = Rs. 13760
B's share = Rs. (17200*1/5) = Rs. 3440
Final Remittance
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As B settles his account by bank draft, he will remit the following amount to A:
Amount remitted by B = (B's share of profit - B's commission - B's expenses)
= (Rs. 3440 - Rs. 4600 - Rs. 800)
= Rs. -9360
As the amount is negative, it means that A is liable to pay Rs. 9360 to B. However, as B is settling his account by bank draft, the final remittance will be:
Final remittance = (Amount remitted by B * -1) = Rs. 9360
Therefore, B will remit Rs. 9360 to A.
-----------------------------------
Total value of goods supplied by A = Rs. 50000
Total value of expenses incurred by A = Rs. 5400
Total value of goods supplied by B = Rs. 14000
Total value of expenses incurred by B = Rs. 800
Total value of sales made by joint venture = Rs. 92000
Commission earned by B @ 5% = Rs. (92000*5/100) = Rs. 4600
Total expenses incurred by joint venture = Rs. (5400+800+4600) = Rs. 10800
Total profit earned by joint venture = Rs. (92000-50000-14000-10800) = Rs. 17200
Profit and Loss Distribution
---------------------------------------
As per the profit and loss sharing ratio of 4:1, the profits of Rs. 17200 will be distributed as follows:
A's share = Rs. (17200*4/5) = Rs. 13760
B's share = Rs. (17200*1/5) = Rs. 3440
Final Remittance
--------------------------
As B settles his account by bank draft, he will remit the following amount to A:
Amount remitted by B = (B's share of profit - B's commission - B's expenses)
= (Rs. 3440 - Rs. 4600 - Rs. 800)
= Rs. -9360
As the amount is negative, it means that A is liable to pay Rs. 9360 to B. However, as B is settling his account by bank draft, the final remittance will be:
Final remittance = (Amount remitted by B * -1) = Rs. 9360
Therefore, B will remit Rs. 9360 to A.
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A and B were partners in a joint venture sharing profits and losses in the proportion of 4:1 respectively. A supplies goods to the value of Rs.50000 and incurs expenses amounting to Rs.5400. B supplies goodsto the value of Rs.14000 and expenses of Rs.800.B sells good on behalf of the joint venture and realizes Rs.92000.B is entitled to a commissionof 5% on sales.B settles his account by bank draft. What will be the final remittance? Answer: B will remit Rs.69160 to A?
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A and B were partners in a joint venture sharing profits and losses in the proportion of 4:1 respectively. A supplies goods to the value of Rs.50000 and incurs expenses amounting to Rs.5400. B supplies goodsto the value of Rs.14000 and expenses of Rs.800.B sells good on behalf of the joint venture and realizes Rs.92000.B is entitled to a commissionof 5% on sales.B settles his account by bank draft. What will be the final remittance? Answer: B will remit Rs.69160 to A? 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 A and B were partners in a joint venture sharing profits and losses in the proportion of 4:1 respectively. A supplies goods to the value of Rs.50000 and incurs expenses amounting to Rs.5400. B supplies goodsto the value of Rs.14000 and expenses of Rs.800.B sells good on behalf of the joint venture and realizes Rs.92000.B is entitled to a commissionof 5% on sales.B settles his account by bank draft. What will be the final remittance? Answer: B will remit Rs.69160 to A? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B were partners in a joint venture sharing profits and losses in the proportion of 4:1 respectively. A supplies goods to the value of Rs.50000 and incurs expenses amounting to Rs.5400. B supplies goodsto the value of Rs.14000 and expenses of Rs.800.B sells good on behalf of the joint venture and realizes Rs.92000.B is entitled to a commissionof 5% on sales.B settles his account by bank draft. What will be the final remittance? Answer: B will remit Rs.69160 to A?.
A and B were partners in a joint venture sharing profits and losses in the proportion of 4:1 respectively. A supplies goods to the value of Rs.50000 and incurs expenses amounting to Rs.5400. B supplies goodsto the value of Rs.14000 and expenses of Rs.800.B sells good on behalf of the joint venture and realizes Rs.92000.B is entitled to a commissionof 5% on sales.B settles his account by bank draft. What will be the final remittance? Answer: B will remit Rs.69160 to A? 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 A and B were partners in a joint venture sharing profits and losses in the proportion of 4:1 respectively. A supplies goods to the value of Rs.50000 and incurs expenses amounting to Rs.5400. B supplies goodsto the value of Rs.14000 and expenses of Rs.800.B sells good on behalf of the joint venture and realizes Rs.92000.B is entitled to a commissionof 5% on sales.B settles his account by bank draft. What will be the final remittance? Answer: B will remit Rs.69160 to A? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B were partners in a joint venture sharing profits and losses in the proportion of 4:1 respectively. A supplies goods to the value of Rs.50000 and incurs expenses amounting to Rs.5400. B supplies goodsto the value of Rs.14000 and expenses of Rs.800.B sells good on behalf of the joint venture and realizes Rs.92000.B is entitled to a commissionof 5% on sales.B settles his account by bank draft. What will be the final remittance? Answer: B will remit Rs.69160 to A?.
Solutions for A and B were partners in a joint venture sharing profits and losses in the proportion of 4:1 respectively. A supplies goods to the value of Rs.50000 and incurs expenses amounting to Rs.5400. B supplies goodsto the value of Rs.14000 and expenses of Rs.800.B sells good on behalf of the joint venture and realizes Rs.92000.B is entitled to a commissionof 5% on sales.B settles his account by bank draft. What will be the final remittance? Answer: B will remit Rs.69160 to A? in English & in Hindi are available as part of our courses for CA Foundation.
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ample number of questions to practice A and B were partners in a joint venture sharing profits and losses in the proportion of 4:1 respectively. A supplies goods to the value of Rs.50000 and incurs expenses amounting to Rs.5400. B supplies goodsto the value of Rs.14000 and expenses of Rs.800.B sells good on behalf of the joint venture and realizes Rs.92000.B is entitled to a commissionof 5% on sales.B settles his account by bank draft. What will be the final remittance? Answer: B will remit Rs.69160 to A? tests, examples and also practice CA Foundation tests.
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