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A and B enter into joint venture sharing profit and loss 3:2 A will purchase goods and B will affect the sale, A purchase goods costing 200000 B sold it for 300000 , the venture is terminated after 3 months A entitled to get 10 percent interest on capital invested irrespective of utilisation period the amount of interest received by A will be?
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A and B enter into joint venture sharing profit and loss 3:2 A will pu...
A and B's Joint Venture
The joint venture between A and B is based on a profit and loss sharing ratio of 3:2. A is responsible for purchasing the goods, while B is responsible for selling them.
Purchase and Sale of Goods
A purchases goods costing 200,000. B then sells these goods for 300,000.
Termination of Venture
The joint venture is terminated after 3 months.
Interest on Capital
A is entitled to receive 10% interest on the capital invested, regardless of the utilization period.
Calculation of Interest Received by A
To calculate the interest received by A, we need to determine the capital invested by A.
The capital invested by A can be calculated using the formula:
Capital Invested = Cost of Goods - Goods Sold
In this case, the cost of goods is 200,000 and the goods sold amount is 300,000.
Therefore, the capital invested by A is 200,000 - 300,000 = -100,000.
Since A is entitled to receive 10% interest on the capital invested, we can calculate the interest amount using the formula:
Interest = Capital Invested * Interest Rate
In this case, the interest rate is 10%.
Therefore, the interest amount received by A is -100,000 * 10% = -10,000.
It is important to note that the interest received by A is negative because the capital invested is negative. This means that A has actually incurred a loss on the capital invested.
Conclusion
The amount of interest received by A is -10,000. This negative interest indicates that A has incurred a loss on the capital invested in the joint venture.
The joint venture between A and B is based on a profit and loss sharing ratio of 3:2. A is responsible for purchasing the goods, while B is responsible for selling them.
Purchase and Sale of Goods
A purchases goods costing 200,000. B then sells these goods for 300,000.
Termination of Venture
The joint venture is terminated after 3 months.
Interest on Capital
A is entitled to receive 10% interest on the capital invested, regardless of the utilization period.
Calculation of Interest Received by A
To calculate the interest received by A, we need to determine the capital invested by A.
The capital invested by A can be calculated using the formula:
Capital Invested = Cost of Goods - Goods Sold
In this case, the cost of goods is 200,000 and the goods sold amount is 300,000.
Therefore, the capital invested by A is 200,000 - 300,000 = -100,000.
Since A is entitled to receive 10% interest on the capital invested, we can calculate the interest amount using the formula:
Interest = Capital Invested * Interest Rate
In this case, the interest rate is 10%.
Therefore, the interest amount received by A is -100,000 * 10% = -10,000.
It is important to note that the interest received by A is negative because the capital invested is negative. This means that A has actually incurred a loss on the capital invested.
Conclusion
The amount of interest received by A is -10,000. This negative interest indicates that A has incurred a loss on the capital invested in the joint venture.
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A and B enter into joint venture sharing profit and loss 3:2 A will purchase goods and B will affect the sale, A purchase goods costing 200000 B sold it for 300000 , the venture is terminated after 3 months A entitled to get 10 percent interest on capital invested irrespective of utilisation period the amount of interest received by A will be?
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A and B enter into joint venture sharing profit and loss 3:2 A will purchase goods and B will affect the sale, A purchase goods costing 200000 B sold it for 300000 , the venture is terminated after 3 months A entitled to get 10 percent interest on capital invested irrespective of utilisation period the amount of interest received by 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 joint venture sharing profit and loss 3:2 A will purchase goods and B will affect the sale, A purchase goods costing 200000 B sold it for 300000 , the venture is terminated after 3 months A entitled to get 10 percent interest on capital invested irrespective of utilisation period the amount of interest received by 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 joint venture sharing profit and loss 3:2 A will purchase goods and B will affect the sale, A purchase goods costing 200000 B sold it for 300000 , the venture is terminated after 3 months A entitled to get 10 percent interest on capital invested irrespective of utilisation period the amount of interest received by A will be?.
A and B enter into joint venture sharing profit and loss 3:2 A will purchase goods and B will affect the sale, A purchase goods costing 200000 B sold it for 300000 , the venture is terminated after 3 months A entitled to get 10 percent interest on capital invested irrespective of utilisation period the amount of interest received by 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 joint venture sharing profit and loss 3:2 A will purchase goods and B will affect the sale, A purchase goods costing 200000 B sold it for 300000 , the venture is terminated after 3 months A entitled to get 10 percent interest on capital invested irrespective of utilisation period the amount of interest received by 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 joint venture sharing profit and loss 3:2 A will purchase goods and B will affect the sale, A purchase goods costing 200000 B sold it for 300000 , the venture is terminated after 3 months A entitled to get 10 percent interest on capital invested irrespective of utilisation period the amount of interest received by A will be?.
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A and B enter into joint venture sharing profit and loss 3:2 A will purchase goods and B will affect the sale, A purchase goods costing 200000 B sold it for 300000 , the venture is terminated after 3 months A entitled to get 10 percent interest on capital invested irrespective of utilisation period the amount of interest received by A will be?, a detailed solution for A and B enter into joint venture sharing profit and loss 3:2 A will purchase goods and B will affect the sale, A purchase goods costing 200000 B sold it for 300000 , the venture is terminated after 3 months A entitled to get 10 percent interest on capital invested irrespective of utilisation period the amount of interest received by A will be? has been provided alongside types of A and B enter into joint venture sharing profit and loss 3:2 A will purchase goods and B will affect the sale, A purchase goods costing 200000 B sold it for 300000 , the venture is terminated after 3 months A entitled to get 10 percent interest on capital invested irrespective of utilisation period the amount of interest received by A will be? theory, EduRev gives you an
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