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A & B entered into a joint venture. A contributed Rs.2,00,000 for goods and Rs.15,000 expenses. B supplied goods of Rs.56,000 and paid expenses of Rs.2,000. B sold the goods for Rs.4,00,000. B is allowed a commission of 10%. Profit sharing is 3:2. How much amount B has to remit to A in full settlement of account?
- a)Rs.2,67,200
- b)Rs.2,65,200
- c)Rs.1,67,200
- d)Rs.2,00,000
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
A B entered into a joint venture. A contributed Rs.2,00,000 for goods...
To solve this problem, we need to calculate the profit and then determine the amount that B has to remit to A in full settlement of the account.
Calculating the Profit:
1. Total investment by A: Rs. 2,00,000 (for goods) + Rs. 15,000 (for expenses) = Rs. 2,15,000
2. Total investment by B: Rs. 56,000 (for goods) + Rs. 2,000 (for expenses) = Rs. 58,000
3. Total investment in the joint venture: Rs. 2,15,000 + Rs. 58,000 = Rs. 2,73,000
4. Total sales: Rs. 4,00,000
Now, let's calculate the profit:
1. Profit = Total Sales - Total Investment
Profit = Rs. 4,00,000 - Rs. 2,73,000 = Rs. 1,27,000
Determining the Profit Sharing Ratio:
The profit sharing ratio is given as 3:2. This means that the total profit will be divided into 5 parts, with A receiving 3 parts and B receiving 2 parts.
Calculating the Share of A and B:
1. Share of A = (3/5) * Profit
Share of A = (3/5) * Rs. 1,27,000 = Rs. 76,200
2. Share of B = (2/5) * Profit
Share of B = (2/5) * Rs. 1,27,000 = Rs. 50,800
Calculating B's Commission:
B is allowed a commission of 10% on sales. So, B's commission = (10/100) * Total Sales = (10/100) * Rs. 4,00,000 = Rs. 40,000
Calculating the Amount B has to Remit to A:
To determine the amount that B has to remit to A, we need to subtract B's commission and B's share of profit from B's total investment.
Amount B has to remit to A = B's Total Investment - B's Commission - B's Share of Profit
Amount B has to remit to A = Rs. 58,000 - Rs. 40,000 - Rs. 50,800 = Rs. -32,800
Since the amount is negative, it means that B has to remit Rs. 32,800 to A.
However, in the options provided, none of them match the correct answer. So, there might be a mistake in the options provided.
Calculating the Profit:
1. Total investment by A: Rs. 2,00,000 (for goods) + Rs. 15,000 (for expenses) = Rs. 2,15,000
2. Total investment by B: Rs. 56,000 (for goods) + Rs. 2,000 (for expenses) = Rs. 58,000
3. Total investment in the joint venture: Rs. 2,15,000 + Rs. 58,000 = Rs. 2,73,000
4. Total sales: Rs. 4,00,000
Now, let's calculate the profit:
1. Profit = Total Sales - Total Investment
Profit = Rs. 4,00,000 - Rs. 2,73,000 = Rs. 1,27,000
Determining the Profit Sharing Ratio:
The profit sharing ratio is given as 3:2. This means that the total profit will be divided into 5 parts, with A receiving 3 parts and B receiving 2 parts.
Calculating the Share of A and B:
1. Share of A = (3/5) * Profit
Share of A = (3/5) * Rs. 1,27,000 = Rs. 76,200
2. Share of B = (2/5) * Profit
Share of B = (2/5) * Rs. 1,27,000 = Rs. 50,800
Calculating B's Commission:
B is allowed a commission of 10% on sales. So, B's commission = (10/100) * Total Sales = (10/100) * Rs. 4,00,000 = Rs. 40,000
Calculating the Amount B has to Remit to A:
To determine the amount that B has to remit to A, we need to subtract B's commission and B's share of profit from B's total investment.
Amount B has to remit to A = B's Total Investment - B's Commission - B's Share of Profit
Amount B has to remit to A = Rs. 58,000 - Rs. 40,000 - Rs. 50,800 = Rs. -32,800
Since the amount is negative, it means that B has to remit Rs. 32,800 to A.
However, in the options provided, none of them match the correct answer. So, there might be a mistake in the options provided.
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A B entered into a joint venture. A contributed Rs.2,00,000 for goods and Rs.15,000 expenses. B supplied goods of Rs.56,000 and paid expenses of Rs.2,000. B sold the goods for Rs.4,00,000. B is allowed a commission of 10%. Profit sharing is 3:2. How much amount B has to remit to A in full settlement of account?a)Rs.2,67,200b)Rs.2,65,200c)Rs.1,67,200d)Rs.2,00,000Correct answer is option 'A'. Can you explain this answer?
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A B entered into a joint venture. A contributed Rs.2,00,000 for goods and Rs.15,000 expenses. B supplied goods of Rs.56,000 and paid expenses of Rs.2,000. B sold the goods for Rs.4,00,000. B is allowed a commission of 10%. Profit sharing is 3:2. How much amount B has to remit to A in full settlement of account?a)Rs.2,67,200b)Rs.2,65,200c)Rs.1,67,200d)Rs.2,00,000Correct answer is option 'A'. Can you explain this answer? for CA CPT 2025 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about A B entered into a joint venture. A contributed Rs.2,00,000 for goods and Rs.15,000 expenses. B supplied goods of Rs.56,000 and paid expenses of Rs.2,000. B sold the goods for Rs.4,00,000. B is allowed a commission of 10%. Profit sharing is 3:2. How much amount B has to remit to A in full settlement of account?a)Rs.2,67,200b)Rs.2,65,200c)Rs.1,67,200d)Rs.2,00,000Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA CPT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A B entered into a joint venture. A contributed Rs.2,00,000 for goods and Rs.15,000 expenses. B supplied goods of Rs.56,000 and paid expenses of Rs.2,000. B sold the goods for Rs.4,00,000. B is allowed a commission of 10%. Profit sharing is 3:2. How much amount B has to remit to A in full settlement of account?a)Rs.2,67,200b)Rs.2,65,200c)Rs.1,67,200d)Rs.2,00,000Correct answer is option 'A'. Can you explain this answer?.
A B entered into a joint venture. A contributed Rs.2,00,000 for goods and Rs.15,000 expenses. B supplied goods of Rs.56,000 and paid expenses of Rs.2,000. B sold the goods for Rs.4,00,000. B is allowed a commission of 10%. Profit sharing is 3:2. How much amount B has to remit to A in full settlement of account?a)Rs.2,67,200b)Rs.2,65,200c)Rs.1,67,200d)Rs.2,00,000Correct answer is option 'A'. Can you explain this answer? for CA CPT 2025 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about A B entered into a joint venture. A contributed Rs.2,00,000 for goods and Rs.15,000 expenses. B supplied goods of Rs.56,000 and paid expenses of Rs.2,000. B sold the goods for Rs.4,00,000. B is allowed a commission of 10%. Profit sharing is 3:2. How much amount B has to remit to A in full settlement of account?a)Rs.2,67,200b)Rs.2,65,200c)Rs.1,67,200d)Rs.2,00,000Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA CPT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A B entered into a joint venture. A contributed Rs.2,00,000 for goods and Rs.15,000 expenses. B supplied goods of Rs.56,000 and paid expenses of Rs.2,000. B sold the goods for Rs.4,00,000. B is allowed a commission of 10%. Profit sharing is 3:2. How much amount B has to remit to A in full settlement of account?a)Rs.2,67,200b)Rs.2,65,200c)Rs.1,67,200d)Rs.2,00,000Correct answer is option 'A'. Can you explain this answer?.
Solutions for A B entered into a joint venture. A contributed Rs.2,00,000 for goods and Rs.15,000 expenses. B supplied goods of Rs.56,000 and paid expenses of Rs.2,000. B sold the goods for Rs.4,00,000. B is allowed a commission of 10%. Profit sharing is 3:2. How much amount B has to remit to A in full settlement of account?a)Rs.2,67,200b)Rs.2,65,200c)Rs.1,67,200d)Rs.2,00,000Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA CPT.
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Here you can find the meaning of A B entered into a joint venture. A contributed Rs.2,00,000 for goods and Rs.15,000 expenses. B supplied goods of Rs.56,000 and paid expenses of Rs.2,000. B sold the goods for Rs.4,00,000. B is allowed a commission of 10%. Profit sharing is 3:2. How much amount B has to remit to A in full settlement of account?a)Rs.2,67,200b)Rs.2,65,200c)Rs.1,67,200d)Rs.2,00,000Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
A B entered into a joint venture. A contributed Rs.2,00,000 for goods and Rs.15,000 expenses. B supplied goods of Rs.56,000 and paid expenses of Rs.2,000. B sold the goods for Rs.4,00,000. B is allowed a commission of 10%. Profit sharing is 3:2. How much amount B has to remit to A in full settlement of account?a)Rs.2,67,200b)Rs.2,65,200c)Rs.1,67,200d)Rs.2,00,000Correct answer is option 'A'. Can you explain this answer?, a detailed solution for A B entered into a joint venture. A contributed Rs.2,00,000 for goods and Rs.15,000 expenses. B supplied goods of Rs.56,000 and paid expenses of Rs.2,000. B sold the goods for Rs.4,00,000. B is allowed a commission of 10%. Profit sharing is 3:2. How much amount B has to remit to A in full settlement of account?a)Rs.2,67,200b)Rs.2,65,200c)Rs.1,67,200d)Rs.2,00,000Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of A B entered into a joint venture. A contributed Rs.2,00,000 for goods and Rs.15,000 expenses. B supplied goods of Rs.56,000 and paid expenses of Rs.2,000. B sold the goods for Rs.4,00,000. B is allowed a commission of 10%. Profit sharing is 3:2. How much amount B has to remit to A in full settlement of account?a)Rs.2,67,200b)Rs.2,65,200c)Rs.1,67,200d)Rs.2,00,000Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A B entered into a joint venture. A contributed Rs.2,00,000 for goods and Rs.15,000 expenses. B supplied goods of Rs.56,000 and paid expenses of Rs.2,000. B sold the goods for Rs.4,00,000. B is allowed a commission of 10%. Profit sharing is 3:2. How much amount B has to remit to A in full settlement of account?a)Rs.2,67,200b)Rs.2,65,200c)Rs.1,67,200d)Rs.2,00,000Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA CPT tests.
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