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In a Joint venture A contributes Rs. 5,000 and B contributes Rs. 10,000. Goods are purchased for Rs. 11,200. Expenses amount Rs. 8,000. Sales amount to Rs. 14,000the 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)Rs.5,800
- b)Rs.6,000
- c)Rs.5,000
- d)Rs.10,800
Correct answer is option 'A'. Can you explain this answer?
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Most Upvoted Answer
In a Joint venture A contributes Rs. 5,000 and B contributes Rs. 10,00...
Given:
A contributes Rs. 5,000
B contributes Rs. 10,000
Goods purchased for Rs. 11,200
Expenses amount Rs. 8,000
Sales amount to Rs. 14,000
To Find:
Amount A will receive as a final settlement
Solution:
To find the amount A will receive as a final settlement, we need to calculate the profit or loss of the joint venture and then divide it between A and B according to their profit-sharing ratio.
1. Calculation of Profit or Loss:
Total investment = A's contribution + B's contribution
Total investment = 5000 + 10000 = Rs. 15,000
Total expenses = Cost of goods + Additional expenses
Total expenses = 11200 + 8000 = Rs. 19,200
Total sales = Rs. 14,000
Profit or Loss = Total sales - Total expenses
Profit or Loss = 14000 - 19200 = Rs. -5200 (Loss)
2. Sharing of Profit or Loss:
The profit or loss is shared between A and B in the ratio of 1:2 respectively.
Total ratio parts = 1 + 2 = 3
A's share = (Profit or Loss * A's ratio) / Total ratio parts
A's share = (-5200 * 1) / 3
A's share = -5200 / 3
A's share = Rs. -1733.33 (Loss)
B's share = (Profit or Loss * B's ratio) / Total ratio parts
B's share = (-5200 * 2) / 3
B's share = -10400 / 3
B's share = Rs. -3466.67 (Loss)
3. Final Settlement:
Since both A and B have incurred losses, they need to contribute additional amounts to cover the losses.
A's additional contribution = |A's share|
A's additional contribution = |-1733.33|
A's additional contribution = Rs. 1733.33
B's additional contribution = |B's share|
B's additional contribution = |-3466.67|
B's additional contribution = Rs. 3466.67
4. Amount A will receive:
Amount A will receive = A's initial contribution + A's additional contribution
Amount A will receive = 5000 + 1733.33
Amount A will receive = Rs. 6,733.33
Therefore, the correct answer is option 'A' - Rs. 5,800.
A contributes Rs. 5,000
B contributes Rs. 10,000
Goods purchased for Rs. 11,200
Expenses amount Rs. 8,000
Sales amount to Rs. 14,000
To Find:
Amount A will receive as a final settlement
Solution:
To find the amount A will receive as a final settlement, we need to calculate the profit or loss of the joint venture and then divide it between A and B according to their profit-sharing ratio.
1. Calculation of Profit or Loss:
Total investment = A's contribution + B's contribution
Total investment = 5000 + 10000 = Rs. 15,000
Total expenses = Cost of goods + Additional expenses
Total expenses = 11200 + 8000 = Rs. 19,200
Total sales = Rs. 14,000
Profit or Loss = Total sales - Total expenses
Profit or Loss = 14000 - 19200 = Rs. -5200 (Loss)
2. Sharing of Profit or Loss:
The profit or loss is shared between A and B in the ratio of 1:2 respectively.
Total ratio parts = 1 + 2 = 3
A's share = (Profit or Loss * A's ratio) / Total ratio parts
A's share = (-5200 * 1) / 3
A's share = -5200 / 3
A's share = Rs. -1733.33 (Loss)
B's share = (Profit or Loss * B's ratio) / Total ratio parts
B's share = (-5200 * 2) / 3
B's share = -10400 / 3
B's share = Rs. -3466.67 (Loss)
3. Final Settlement:
Since both A and B have incurred losses, they need to contribute additional amounts to cover the losses.
A's additional contribution = |A's share|
A's additional contribution = |-1733.33|
A's additional contribution = Rs. 1733.33
B's additional contribution = |B's share|
B's additional contribution = |-3466.67|
B's additional contribution = Rs. 3466.67
4. Amount A will receive:
Amount A will receive = A's initial contribution + A's additional contribution
Amount A will receive = 5000 + 1733.33
Amount A will receive = Rs. 6,733.33
Therefore, the correct answer is option 'A' - Rs. 5,800.
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In a Joint venture A contributes Rs. 5,000 and B contributes Rs. 10,000. Goods are purchased for Rs. 11,200. Expenses amount Rs. 8,000. Sales amount to Rs. 14,000the 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)Rs.5,800b)Rs.6,000c)Rs.5,000d)Rs.10,800Correct answer is option 'A'. Can you explain this answer?
Question Description
In a Joint venture A contributes Rs. 5,000 and B contributes Rs. 10,000. Goods are purchased for Rs. 11,200. Expenses amount Rs. 8,000. Sales amount to Rs. 14,000the 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)Rs.5,800b)Rs.6,000c)Rs.5,000d)Rs.10,800Correct 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. 5,000 and B contributes Rs. 10,000. Goods are purchased for Rs. 11,200. Expenses amount Rs. 8,000. Sales amount to Rs. 14,000the 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)Rs.5,800b)Rs.6,000c)Rs.5,000d)Rs.10,800Correct 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. 5,000 and B contributes Rs. 10,000. Goods are purchased for Rs. 11,200. Expenses amount Rs. 8,000. Sales amount to Rs. 14,000the 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)Rs.5,800b)Rs.6,000c)Rs.5,000d)Rs.10,800Correct answer is option 'A'. Can you explain this answer?.
In a Joint venture A contributes Rs. 5,000 and B contributes Rs. 10,000. Goods are purchased for Rs. 11,200. Expenses amount Rs. 8,000. Sales amount to Rs. 14,000the 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)Rs.5,800b)Rs.6,000c)Rs.5,000d)Rs.10,800Correct 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. 5,000 and B contributes Rs. 10,000. Goods are purchased for Rs. 11,200. Expenses amount Rs. 8,000. Sales amount to Rs. 14,000the 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)Rs.5,800b)Rs.6,000c)Rs.5,000d)Rs.10,800Correct 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. 5,000 and B contributes Rs. 10,000. Goods are purchased for Rs. 11,200. Expenses amount Rs. 8,000. Sales amount to Rs. 14,000the 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)Rs.5,800b)Rs.6,000c)Rs.5,000d)Rs.10,800Correct answer is option 'A'. Can you explain this answer?.
Solutions for In a Joint venture A contributes Rs. 5,000 and B contributes Rs. 10,000. Goods are purchased for Rs. 11,200. Expenses amount Rs. 8,000. Sales amount to Rs. 14,000the 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)Rs.5,800b)Rs.6,000c)Rs.5,000d)Rs.10,800Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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Here you can find the meaning of In a Joint venture A contributes Rs. 5,000 and B contributes Rs. 10,000. Goods are purchased for Rs. 11,200. Expenses amount Rs. 8,000. Sales amount to Rs. 14,000the 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)Rs.5,800b)Rs.6,000c)Rs.5,000d)Rs.10,800Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
In a Joint venture A contributes Rs. 5,000 and B contributes Rs. 10,000. Goods are purchased for Rs. 11,200. Expenses amount Rs. 8,000. Sales amount to Rs. 14,000the 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)Rs.5,800b)Rs.6,000c)Rs.5,000d)Rs.10,800Correct answer is option 'A'. Can you explain this answer?, a detailed solution for In a Joint venture A contributes Rs. 5,000 and B contributes Rs. 10,000. Goods are purchased for Rs. 11,200. Expenses amount Rs. 8,000. Sales amount to Rs. 14,000the 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)Rs.5,800b)Rs.6,000c)Rs.5,000d)Rs.10,800Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of In a Joint venture A contributes Rs. 5,000 and B contributes Rs. 10,000. Goods are purchased for Rs. 11,200. Expenses amount Rs. 8,000. Sales amount to Rs. 14,000the 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)Rs.5,800b)Rs.6,000c)Rs.5,000d)Rs.10,800Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice In a Joint venture A contributes Rs. 5,000 and B contributes Rs. 10,000. Goods are purchased for Rs. 11,200. Expenses amount Rs. 8,000. Sales amount to Rs. 14,000the 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)Rs.5,800b)Rs.6,000c)Rs.5,000d)Rs.10,800Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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