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A bought good of the value of rs 10000 and consigned them to B to be sold by them on a joint venture ,profit being divided equally,A paid rs 1,000 for freight and insurance .A draw a bill on B for rs 10,000 .A got it discounted at rs 9,500 .B sold the good for rs15,000 . commission payable to B ,500 . The amount to be remitted by B to A will be ?
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A bought good of the value of rs 10000 and consigned them to B to be s...
Calculation of Amount to be Remitted by B to A


Calculation of Total Cost Incurred by A


  • Value of goods consigned = Rs. 10,000

  • Freight and insurance paid by A = Rs. 1,000

  • Total cost incurred by A = Rs. 11,000



Calculation of Discounted Amount Received by A


  • Bill drawn by A on B = Rs. 10,000

  • Discounted value of the bill received by A = Rs. 9,500



Calculation of Total Revenue Generated


  • Selling price of goods by B = Rs. 15,000

  • Commission payable to B = Rs. 500

  • Total revenue generated = Rs. 15,000 - Rs. 500 = Rs. 14,500



Calculation of Profit and Loss Sharing


  • Profit or loss to be shared equally between A and B

  • Total cost incurred by A = Rs. 11,000

  • Total revenue generated = Rs. 14,500

  • Profit made = Rs. 14,500 - Rs. 11,000 = Rs. 3,500

  • Profit to be shared equally between A and B = Rs. 3,500/2 = Rs. 1,750



Calculation of Amount to be Remitted by B to A


  • Amount to be remitted by B to A = Discounted value of bill received by A + A's share of profit

  • Amount to be remitted by B to A = Rs. 9,500 + Rs. 1,750 = Rs. 11,250



Explanation


A consigned goods of the value of Rs. 10,000 to B for sale on a joint venture where the profit was to be divided equally. A paid Rs. 1,000 for freight and insurance and drew a bill of Rs. 10,000 on B, which was discounted at Rs. 9,500. B sold the goods for Rs. 15,000 and earned a commission of Rs. 500. As per the joint venture agreement, the profit or loss was to be shared equally between A and B. The total cost incurred by A was Rs. 11,000 and the total revenue generated was Rs. 14,500. Hence, the profit made was Rs. 3,500, which was to be shared equally between A and B. A's share of profit was Rs. 1,750. Therefore, the amount to be remitted by B to A was Rs. 11,250 (discounted value of bill received by A + A's share of profit).
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A bought good of the value of rs 10000 and consigned them to B to be sold by them on a joint venture ,profit being divided equally,A paid rs 1,000 for freight and insurance .A draw a bill on B for rs 10,000 .A got it discounted at rs 9,500 .B sold the good for rs15,000 . commission payable to B ,500 . The amount to be remitted by B to A will be ?
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A bought good of the value of rs 10000 and consigned them to B to be sold by them on a joint venture ,profit being divided equally,A paid rs 1,000 for freight and insurance .A draw a bill on B for rs 10,000 .A got it discounted at rs 9,500 .B sold the good for rs15,000 . commission payable to B ,500 . The amount to be remitted 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 bought good of the value of rs 10000 and consigned them to B to be sold by them on a joint venture ,profit being divided equally,A paid rs 1,000 for freight and insurance .A draw a bill on B for rs 10,000 .A got it discounted at rs 9,500 .B sold the good for rs15,000 . commission payable to B ,500 . The amount to be remitted 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 bought good of the value of rs 10000 and consigned them to B to be sold by them on a joint venture ,profit being divided equally,A paid rs 1,000 for freight and insurance .A draw a bill on B for rs 10,000 .A got it discounted at rs 9,500 .B sold the good for rs15,000 . commission payable to B ,500 . The amount to be remitted by B to A will be ?.
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