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A and B enter into a Joint Venture sharing profits and losses in the ratio 3 : 2. A purchased good costing 2,00,000. Other expenses of A 10,000. B sold the goods for 1,80,000. Remaining goods were taken over by B at 20,000. The amount of final remittance to be paid by B to A will be:?
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A and B enter into a Joint Venture sharing profits and losses in the r...
Given information:
- A and B enter into a Joint Venture sharing profits and losses in the ratio 3:2.
- A purchased goods costing 2,00,000.
- Other expenses of A were 10,000.
- B sold the goods for 1,80,000.
- Remaining goods were taken over by B at 20,000.
Calculation:
1. Calculate the profit or loss:
To calculate the profit or loss, we need to find the total expenses and the total revenue.
Total expenses = Cost of goods purchased by A + Other expenses of A
= 2,00,000 + 10,000
= 2,10,000
Total revenue = Sale proceeds of B + Value of remaining goods taken over by B
= 1,80,000 + 20,000
= 2,00,000
Profit or loss = Total revenue - Total expenses
= 2,00,000 - 2,10,000
= -10,000 (Loss)
2. Calculate the profit or loss sharing ratio:
The profit or loss sharing ratio is given as 3:2, which means A will bear 3 parts and B will bear 2 parts of the loss.
Total parts = 3 + 2
= 5
A's share of loss = (3/5) * (-10,000)
= -6,000
B's share of loss = (2/5) * (-10,000)
= -4,000
3. Calculate the final remittance:
The final remittance is the amount to be paid by B to A, taking into account the profit or loss sharing ratio.
Final remittance = B's share of loss - Value of remaining goods taken over by B
= -4,000 - 20,000
= -24,000
Conclusion:
Based on the given information, the final remittance to be paid by B to A is -24,000. This means B needs to pay 24,000 to A to settle the loss incurred in the joint venture.
- A and B enter into a Joint Venture sharing profits and losses in the ratio 3:2.
- A purchased goods costing 2,00,000.
- Other expenses of A were 10,000.
- B sold the goods for 1,80,000.
- Remaining goods were taken over by B at 20,000.
Calculation:
1. Calculate the profit or loss:
To calculate the profit or loss, we need to find the total expenses and the total revenue.
Total expenses = Cost of goods purchased by A + Other expenses of A
= 2,00,000 + 10,000
= 2,10,000
Total revenue = Sale proceeds of B + Value of remaining goods taken over by B
= 1,80,000 + 20,000
= 2,00,000
Profit or loss = Total revenue - Total expenses
= 2,00,000 - 2,10,000
= -10,000 (Loss)
2. Calculate the profit or loss sharing ratio:
The profit or loss sharing ratio is given as 3:2, which means A will bear 3 parts and B will bear 2 parts of the loss.
Total parts = 3 + 2
= 5
A's share of loss = (3/5) * (-10,000)
= -6,000
B's share of loss = (2/5) * (-10,000)
= -4,000
3. Calculate the final remittance:
The final remittance is the amount to be paid by B to A, taking into account the profit or loss sharing ratio.
Final remittance = B's share of loss - Value of remaining goods taken over by B
= -4,000 - 20,000
= -24,000
Conclusion:
Based on the given information, the final remittance to be paid by B to A is -24,000. This means B needs to pay 24,000 to A to settle the loss incurred in the joint venture.
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A and B enter into a Joint Venture sharing profits and losses in the ratio 3 : 2. A purchased good costing 2,00,000. Other expenses of A 10,000. B sold the goods for 1,80,000. Remaining goods were taken over by B at 20,000. The amount of final remittance to be paid by B to A will be:?
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A and B enter into a Joint Venture sharing profits and losses in the ratio 3 : 2. A purchased good costing 2,00,000. Other expenses of A 10,000. B sold the goods for 1,80,000. Remaining goods were taken over by B at 20,000. The amount of final remittance to be paid by B to A 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 A and B enter into a Joint Venture sharing profits and losses in the ratio 3 : 2. A purchased good costing 2,00,000. Other expenses of A 10,000. B sold the goods for 1,80,000. Remaining goods were taken over by B at 20,000. The amount of final remittance to be paid by B to A will be:? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B enter into a Joint Venture sharing profits and losses in the ratio 3 : 2. A purchased good costing 2,00,000. Other expenses of A 10,000. B sold the goods for 1,80,000. Remaining goods were taken over by B at 20,000. The amount of final remittance to be paid by B to A will be:?.
A and B enter into a Joint Venture sharing profits and losses in the ratio 3 : 2. A purchased good costing 2,00,000. Other expenses of A 10,000. B sold the goods for 1,80,000. Remaining goods were taken over by B at 20,000. The amount of final remittance to be paid by B to A 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 A and B enter into a Joint Venture sharing profits and losses in the ratio 3 : 2. A purchased good costing 2,00,000. Other expenses of A 10,000. B sold the goods for 1,80,000. Remaining goods were taken over by B at 20,000. The amount of final remittance to be paid by B to A will be:? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B enter into a Joint Venture sharing profits and losses in the ratio 3 : 2. A purchased good costing 2,00,000. Other expenses of A 10,000. B sold the goods for 1,80,000. Remaining goods were taken over by B at 20,000. The amount of final remittance to be paid by B to A will be:?.
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A and B enter into a Joint Venture sharing profits and losses in the ratio 3 : 2. A purchased good costing 2,00,000. Other expenses of A 10,000. B sold the goods for 1,80,000. Remaining goods were taken over by B at 20,000. The amount of final remittance to be paid by B to A will be:?, a detailed solution for A and B enter into a Joint Venture sharing profits and losses in the ratio 3 : 2. A purchased good costing 2,00,000. Other expenses of A 10,000. B sold the goods for 1,80,000. Remaining goods were taken over by B at 20,000. The amount of final remittance to be paid by B to A will be:? has been provided alongside types of A and B enter into a Joint Venture sharing profits and losses in the ratio 3 : 2. A purchased good costing 2,00,000. Other expenses of A 10,000. B sold the goods for 1,80,000. Remaining goods were taken over by B at 20,000. The amount of final remittance to be paid by B to A will be:? theory, EduRev gives you an
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