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X and Y entered in a joint venture
X supplied goods worth Rs. 60,000 and paid Expenses Rs. 6,000.
Y supplied goods worth Rs. 14,000 and paid Expenses Rs. 1,000.
Y sold the goods for Rs.1,00,000 and he is entitled to a commission of 5% on sales. Find the profit on Joint Venture. 
  • a)
    14,400
  • b)
    14,000
  • c)
    13,000
  • d)
    13,200
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
X and Y entered in a joint ventureXsupplied goods worth Rs. 60,000 and...
Given:
- X supplied goods worth Rs. 60,000 and paid expenses Rs. 6,000.
- Y supplied goods worth Rs. 14,000 and paid expenses Rs. 1,000.
- Y sold the goods for Rs. 1,00,000 and is entitled to a commission of 5% on sales.

To find:
- The profit on the joint venture.

Calculation:

1. Calculate the total cost:
- X's goods cost: Rs. 60,000
- Y's goods cost: Rs. 14,000
- Total cost = X's goods cost + Y's goods cost = Rs. 60,000 + Rs. 14,000 = Rs. 74,000

2. Calculate the total expenses:
- X's expenses: Rs. 6,000
- Y's expenses: Rs. 1,000
- Total expenses = X's expenses + Y's expenses = Rs. 6,000 + Rs. 1,000 = Rs. 7,000

3. Calculate the total sales:
- Y sold the goods for Rs. 1,00,000
- Y's commission on sales = 5% of Rs. 1,00,000 = (5/100) * Rs. 1,00,000 = Rs. 5,000
- Total sales = Rs. 1,00,000 - Y's commission = Rs. 1,00,000 - Rs. 5,000 = Rs. 95,000

4. Calculate the profit:
- Profit = Total sales - Total cost - Total expenses = Rs. 95,000 - Rs. 74,000 - Rs. 7,000 = Rs. 14,000

Therefore,
The profit on the joint venture is Rs. 14,000. (Option B)
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X and Y entered in a joint ventureXsupplied goods worth Rs. 60,000 and paid Expenses Rs. 6,000.Ysupplied goods worth Rs. 14,000 and paid Expenses Rs. 1,000.Ysold the goods for Rs.1,00,000 and he isentitled to a commission of 5% on sales. Findthe profit on Joint Venture.a)14,400b)14,000c)13,000d)13,200Correct answer is option 'B'. Can you explain this answer?
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