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Anny and Bunny enter into a joint venture sharing profits and losses in the ratio 1:1. Anny purchased goods costing Rs. 20,000. Bunny sold the goods for Rs. 25,000. Anny is entitled to get 1% commission on purchase and Bunny is entitled to get 5% commission on sales. The profit on venture will be:
- a)Rs. 3,550.
- b)Rs. 3,600.
- c)Rs. 3,400.
- d)Rs. 3,800.
Correct answer is option 'A'. Can you explain this answer?
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Most Upvoted Answer
Anny and Bunny enter into a joint venture sharing profits and losses i...
Calculation of Anny's commission:
- Anny's commission on purchase = 1% of Rs. 20,000 = Rs. 200
Calculation of Bunny's commission:
- Bunny's commission on sales = 5% of Rs. 25,000 = Rs. 1,250
Total commission = Rs. 200 + Rs. 1,250 = Rs. 1,450
Calculation of profit:
- Cost of goods sold = Rs. 20,000
- Selling price = Rs. 25,000
- Gross profit = Rs. 25,000 - Rs. 20,000 = Rs. 5,000
- Profit to be shared equally between Anny and Bunny = Rs. 5,000/2 = Rs. 2,500 each
Distribution of profit and commission:
- Anny's share of profit = Rs. 2,500 + Rs. 725 (1/2 of commission) = Rs. 3,225
- Bunny's share of profit = Rs. 2,500 + Rs. 725 (1/2 of commission) = Rs. 3,225
Total profit = Rs. 6,450
Therefore, option A (Rs. 3,550) is incorrect. The correct answer is option D (Rs. 3,800).
- Anny's commission on purchase = 1% of Rs. 20,000 = Rs. 200
Calculation of Bunny's commission:
- Bunny's commission on sales = 5% of Rs. 25,000 = Rs. 1,250
Total commission = Rs. 200 + Rs. 1,250 = Rs. 1,450
Calculation of profit:
- Cost of goods sold = Rs. 20,000
- Selling price = Rs. 25,000
- Gross profit = Rs. 25,000 - Rs. 20,000 = Rs. 5,000
- Profit to be shared equally between Anny and Bunny = Rs. 5,000/2 = Rs. 2,500 each
Distribution of profit and commission:
- Anny's share of profit = Rs. 2,500 + Rs. 725 (1/2 of commission) = Rs. 3,225
- Bunny's share of profit = Rs. 2,500 + Rs. 725 (1/2 of commission) = Rs. 3,225
Total profit = Rs. 6,450
Therefore, option A (Rs. 3,550) is incorrect. The correct answer is option D (Rs. 3,800).
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Community Answer
Anny and Bunny enter into a joint venture sharing profits and losses i...
25000-(20000+25000*5%+20000*1%)
25000-(20000+1250+200)
25000-21450=3550
25000-(20000+1250+200)
25000-21450=3550
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Anny and Bunny enter into a joint venture sharing profits and losses in the ratio 1:1. Anny purchased goods costing Rs. 20,000. Bunny sold the goods for Rs. 25,000. Anny is entitled to get 1% commission on purchase and Bunny is entitled to get 5% commission on sales. The profit on venture will be:a)Rs. 3,550.b)Rs. 3,600.c)Rs. 3,400.d)Rs. 3,800.Correct answer is option 'A'. Can you explain this answer?
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Anny and Bunny enter into a joint venture sharing profits and losses in the ratio 1:1. Anny purchased goods costing Rs. 20,000. Bunny sold the goods for Rs. 25,000. Anny is entitled to get 1% commission on purchase and Bunny is entitled to get 5% commission on sales. The profit on venture will be:a)Rs. 3,550.b)Rs. 3,600.c)Rs. 3,400.d)Rs. 3,800.Correct answer is option 'A'. Can you explain this answer? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about Anny and Bunny enter into a joint venture sharing profits and losses in the ratio 1:1. Anny purchased goods costing Rs. 20,000. Bunny sold the goods for Rs. 25,000. Anny is entitled to get 1% commission on purchase and Bunny is entitled to get 5% commission on sales. The profit on venture will be:a)Rs. 3,550.b)Rs. 3,600.c)Rs. 3,400.d)Rs. 3,800.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Anny and Bunny enter into a joint venture sharing profits and losses in the ratio 1:1. Anny purchased goods costing Rs. 20,000. Bunny sold the goods for Rs. 25,000. Anny is entitled to get 1% commission on purchase and Bunny is entitled to get 5% commission on sales. The profit on venture will be:a)Rs. 3,550.b)Rs. 3,600.c)Rs. 3,400.d)Rs. 3,800.Correct answer is option 'A'. Can you explain this answer?.
Anny and Bunny enter into a joint venture sharing profits and losses in the ratio 1:1. Anny purchased goods costing Rs. 20,000. Bunny sold the goods for Rs. 25,000. Anny is entitled to get 1% commission on purchase and Bunny is entitled to get 5% commission on sales. The profit on venture will be:a)Rs. 3,550.b)Rs. 3,600.c)Rs. 3,400.d)Rs. 3,800.Correct answer is option 'A'. Can you explain this answer? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about Anny and Bunny enter into a joint venture sharing profits and losses in the ratio 1:1. Anny purchased goods costing Rs. 20,000. Bunny sold the goods for Rs. 25,000. Anny is entitled to get 1% commission on purchase and Bunny is entitled to get 5% commission on sales. The profit on venture will be:a)Rs. 3,550.b)Rs. 3,600.c)Rs. 3,400.d)Rs. 3,800.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Anny and Bunny enter into a joint venture sharing profits and losses in the ratio 1:1. Anny purchased goods costing Rs. 20,000. Bunny sold the goods for Rs. 25,000. Anny is entitled to get 1% commission on purchase and Bunny is entitled to get 5% commission on sales. The profit on venture will be:a)Rs. 3,550.b)Rs. 3,600.c)Rs. 3,400.d)Rs. 3,800.Correct answer is option 'A'. Can you explain this answer?.
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ample number of questions to practice Anny and Bunny enter into a joint venture sharing profits and losses in the ratio 1:1. Anny purchased goods costing Rs. 20,000. Bunny sold the goods for Rs. 25,000. Anny is entitled to get 1% commission on purchase and Bunny is entitled to get 5% commission on sales. The profit on venture will be:a)Rs. 3,550.b)Rs. 3,600.c)Rs. 3,400.d)Rs. 3,800.Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA CPT tests.
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