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A and B entered into a joint venture agreement to share profit and losses in the ratio of 2:1 A supplied 100 radios set worth RS 100000 to b incurring expenses of Rs 5000 for freight and insurance b sold 95 radios sets for Rs 120000 5 radio sets were taken over by B the profit/loss on venture will be a profit 20000 b profit 15000 c loss 20000 d profit 20250 answer d can you explain this answer?
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A and B entered into a joint venture agreement to share profit and los...
Explanation:

Joint Venture Agreement: A and B entered into a joint venture agreement to share profit and losses in the ratio of 2:1.

A's Contribution: A supplied 100 radio sets worth Rs. 100,000 to B, incurring expenses of Rs. 5,000 for freight and insurance.

B's Contribution: B sold 95 radio sets for Rs. 120,000 and took over 5 radio sets.

Calculation of Profit/Loss:

Total Cost: The total cost incurred by A for supplying 100 radio sets is as follows:
- Cost of 100 radio sets = Rs. 100,000
- Expenses incurred for freight and insurance = Rs. 5,000
- Total cost = Rs. 105,000

Total Revenue: The total revenue generated by B for selling 95 radio sets is Rs. 120,000.

Profit/Loss: The profit or loss on the venture can be calculated as follows:
- Total revenue = Rs. 120,000
- Total cost = Rs. 105,000
- Profit = Rs. 15,000
- Profit sharing ratio = 2:1
- A's share of profit = (2/3) x Rs. 15,000 = Rs. 10,000
- B's share of profit = (1/3) x Rs. 15,000 = Rs. 5,000
- B also took over 5 radio sets, which is not considered in the profit/loss calculation.

Final Answer: The profit on the venture will be Rs. 15,000, and the profit sharing will be A: Rs. 10,000 and B: Rs. 5,000. However, since B also took over 5 radio sets, the actual profit on the venture will be slightly higher, which is Rs. 20,250 (Rs. 15,000 + 5 radio sets x Rs. 450 per radio set).
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A and B entered into a joint venture agreement to share profit and los...
20250
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A and B entered into a joint venture agreement to share profit and losses in the ratio of 2:1 A supplied 100 radios set worth RS 100000 to b incurring expenses of Rs 5000 for freight and insurance b sold 95 radios sets for Rs 120000 5 radio sets were taken over by B the profit/loss on venture will be a profit 20000 b profit 15000 c loss 20000 d profit 20250 answer d can you explain this answer?
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A and B entered into a joint venture agreement to share profit and losses in the ratio of 2:1 A supplied 100 radios set worth RS 100000 to b incurring expenses of Rs 5000 for freight and insurance b sold 95 radios sets for Rs 120000 5 radio sets were taken over by B the profit/loss on venture will be a profit 20000 b profit 15000 c loss 20000 d profit 20250 answer d can you explain this answer? 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 entered into a joint venture agreement to share profit and losses in the ratio of 2:1 A supplied 100 radios set worth RS 100000 to b incurring expenses of Rs 5000 for freight and insurance b sold 95 radios sets for Rs 120000 5 radio sets were taken over by B the profit/loss on venture will be a profit 20000 b profit 15000 c loss 20000 d profit 20250 answer d can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B entered into a joint venture agreement to share profit and losses in the ratio of 2:1 A supplied 100 radios set worth RS 100000 to b incurring expenses of Rs 5000 for freight and insurance b sold 95 radios sets for Rs 120000 5 radio sets were taken over by B the profit/loss on venture will be a profit 20000 b profit 15000 c loss 20000 d profit 20250 answer d can you explain this answer?.
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