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Aar and Bar were partners in a joint venture sharing profits and losses in the proportion of 4/5th and 1/5th respectively. Aar supplies goods to the value of Rs.50,000 and incurs expenses amounting to Rs.5,400. Bar supplies goods to the value of Rs.14,000 and his expense amount to Rs.800. Bar sells goods on behalf of the joint venture and realizes Rs.92,000. Bar is entitled to a commission of 5 percent on sales. Bar settles his account by bank draft. What will be the final remittance?
- a)Bar will remit Rs.69,160 to Aar
- b)Aar will remit Rs.69,160 to Bar
- c)Aar will remit Rs.69,000 to Bar
- d)Bar will remit Rs.69,000 to Aar
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
Aar and Bar were partners in a joint venture sharing profits and losse...
Let us first find the profit from the JV. It can be calculated as follows:
Sales Revenue Rs 92,000
Less: Expenses
1. Commission (5%*92000) (Rs 4,600)
2. Cost of Goods (50,000 + 14,000) (Rs 64,000)
3. Expenses (5,400 + 800) (Rs 6,200)
Profit from JV Rs 17,200
Share of Aar = Rs 17,200*4/5 = Rs 13,760
Expenses incurred by Aar till date = Rs 55,400 (50,000+5,400)
Incomes collected by Aar till date = NIL
Therefore, Aar has to receive Rs 55,400 + 13,760 as final settlement.
Therefore, Final Settlement = Bar remits Rs 69,160 to Aar
Most Upvoted Answer
Aar and Bar were partners in a joint venture sharing profits and losse...
Create a JV A/C Dr. Cr. Aar expenses. Bar supplied Goods 50,000. 92,000 5,400 Bar expenses 14,000 800 commission Now we can create Remitence 4600. Account Gross Profit. Aar Remitence A/c 17,200. divide in 4:1 dr. cr. Aar. Bar. 50,000 4/5. 1/5. 5,400 13,760. 3440. 13,760 Total = 69,160 Bar will remit Rs. 69,160 to Aar
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Community Answer
Aar and Bar were partners in a joint venture sharing profits and losse...
To find the final remittance, we need to calculate the profit or loss for the joint venture and then divide it according to the profit sharing ratio between Aar and Bar.
Step 1: Calculate the total revenue for the joint venture
The total revenue is the sum of the value of goods supplied by Aar and Bar, along with any commission earned by Bar.
Total revenue = Value of goods supplied by Aar + Value of goods supplied by Bar + Commission earned by Bar
Total revenue = Rs. 50,000 + Rs. 14,000 + (5% of Rs. 92,000)
Total revenue = Rs. 50,000 + Rs. 14,000 + Rs. 4,600
Total revenue = Rs. 68,600
Step 2: Calculate the total expenses for the joint venture
The total expenses are the sum of the expenses incurred by Aar and Bar.
Total expenses = Expenses incurred by Aar + Expenses incurred by Bar
Total expenses = Rs. 5,400 + Rs. 800
Total expenses = Rs. 6,200
Step 3: Calculate the profit or loss for the joint venture
Profit or loss = Total revenue - Total expenses
Profit or loss = Rs. 68,600 - Rs. 6,200
Profit or loss = Rs. 62,400
Step 4: Divide the profit or loss according to the profit sharing ratio
The profit sharing ratio between Aar and Bar is 4/5 and 1/5 respectively.
Aar's share = (4/5) * Profit or loss
Aar's share = (4/5) * Rs. 62,400
Aar's share = Rs. 49,920
Bar's share = (1/5) * Profit or loss
Bar's share = (1/5) * Rs. 62,400
Bar's share = Rs. 12,480
Step 5: Calculate the final remittance
Since Bar is the one who settled the account by bank draft, the final remittance will be the amount that Bar will remit to Aar.
Final remittance = Bar's share
Final remittance = Rs. 12,480
Therefore, the correct answer is option A. Bar will remit Rs. 12,480 to Aar.
Step 1: Calculate the total revenue for the joint venture
The total revenue is the sum of the value of goods supplied by Aar and Bar, along with any commission earned by Bar.
Total revenue = Value of goods supplied by Aar + Value of goods supplied by Bar + Commission earned by Bar
Total revenue = Rs. 50,000 + Rs. 14,000 + (5% of Rs. 92,000)
Total revenue = Rs. 50,000 + Rs. 14,000 + Rs. 4,600
Total revenue = Rs. 68,600
Step 2: Calculate the total expenses for the joint venture
The total expenses are the sum of the expenses incurred by Aar and Bar.
Total expenses = Expenses incurred by Aar + Expenses incurred by Bar
Total expenses = Rs. 5,400 + Rs. 800
Total expenses = Rs. 6,200
Step 3: Calculate the profit or loss for the joint venture
Profit or loss = Total revenue - Total expenses
Profit or loss = Rs. 68,600 - Rs. 6,200
Profit or loss = Rs. 62,400
Step 4: Divide the profit or loss according to the profit sharing ratio
The profit sharing ratio between Aar and Bar is 4/5 and 1/5 respectively.
Aar's share = (4/5) * Profit or loss
Aar's share = (4/5) * Rs. 62,400
Aar's share = Rs. 49,920
Bar's share = (1/5) * Profit or loss
Bar's share = (1/5) * Rs. 62,400
Bar's share = Rs. 12,480
Step 5: Calculate the final remittance
Since Bar is the one who settled the account by bank draft, the final remittance will be the amount that Bar will remit to Aar.
Final remittance = Bar's share
Final remittance = Rs. 12,480
Therefore, the correct answer is option A. Bar will remit Rs. 12,480 to Aar.
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Aar and Bar were partners in a joint venture sharing profits and losses in the proportion of 4/5th and 1/5th respectively. Aar supplies goods to the value of Rs.50,000 and incurs expenses amounting to Rs.5,400. Bar supplies goods to the value of Rs.14,000 and his expense amount to Rs.800. Bar sells goods on behalf of the joint venture and realizes Rs.92,000. Bar is entitled to a commission of 5 percent on sales. Bar settles his account by bank draft. What will be the final remittance?a)Bar will remit Rs.69,160 to Aarb)Aar will remit Rs.69,160 to Barc)Aar will remit Rs.69,000 to Bard)Bar will remit Rs.69,000 to AarCorrect answer is option 'A'. Can you explain this answer?
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Aar and Bar were partners in a joint venture sharing profits and losses in the proportion of 4/5th and 1/5th respectively. Aar supplies goods to the value of Rs.50,000 and incurs expenses amounting to Rs.5,400. Bar supplies goods to the value of Rs.14,000 and his expense amount to Rs.800. Bar sells goods on behalf of the joint venture and realizes Rs.92,000. Bar is entitled to a commission of 5 percent on sales. Bar settles his account by bank draft. What will be the final remittance?a)Bar will remit Rs.69,160 to Aarb)Aar will remit Rs.69,160 to Barc)Aar will remit Rs.69,000 to Bard)Bar will remit Rs.69,000 to AarCorrect answer is option 'A'. 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 Aar and Bar were partners in a joint venture sharing profits and losses in the proportion of 4/5th and 1/5th respectively. Aar supplies goods to the value of Rs.50,000 and incurs expenses amounting to Rs.5,400. Bar supplies goods to the value of Rs.14,000 and his expense amount to Rs.800. Bar sells goods on behalf of the joint venture and realizes Rs.92,000. Bar is entitled to a commission of 5 percent on sales. Bar settles his account by bank draft. What will be the final remittance?a)Bar will remit Rs.69,160 to Aarb)Aar will remit Rs.69,160 to Barc)Aar will remit Rs.69,000 to Bard)Bar will remit Rs.69,000 to AarCorrect answer is option 'A'. 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 Aar and Bar were partners in a joint venture sharing profits and losses in the proportion of 4/5th and 1/5th respectively. Aar supplies goods to the value of Rs.50,000 and incurs expenses amounting to Rs.5,400. Bar supplies goods to the value of Rs.14,000 and his expense amount to Rs.800. Bar sells goods on behalf of the joint venture and realizes Rs.92,000. Bar is entitled to a commission of 5 percent on sales. Bar settles his account by bank draft. What will be the final remittance?a)Bar will remit Rs.69,160 to Aarb)Aar will remit Rs.69,160 to Barc)Aar will remit Rs.69,000 to Bard)Bar will remit Rs.69,000 to AarCorrect answer is option 'A'. Can you explain this answer?.
Aar and Bar were partners in a joint venture sharing profits and losses in the proportion of 4/5th and 1/5th respectively. Aar supplies goods to the value of Rs.50,000 and incurs expenses amounting to Rs.5,400. Bar supplies goods to the value of Rs.14,000 and his expense amount to Rs.800. Bar sells goods on behalf of the joint venture and realizes Rs.92,000. Bar is entitled to a commission of 5 percent on sales. Bar settles his account by bank draft. What will be the final remittance?a)Bar will remit Rs.69,160 to Aarb)Aar will remit Rs.69,160 to Barc)Aar will remit Rs.69,000 to Bard)Bar will remit Rs.69,000 to AarCorrect answer is option 'A'. 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 Aar and Bar were partners in a joint venture sharing profits and losses in the proportion of 4/5th and 1/5th respectively. Aar supplies goods to the value of Rs.50,000 and incurs expenses amounting to Rs.5,400. Bar supplies goods to the value of Rs.14,000 and his expense amount to Rs.800. Bar sells goods on behalf of the joint venture and realizes Rs.92,000. Bar is entitled to a commission of 5 percent on sales. Bar settles his account by bank draft. What will be the final remittance?a)Bar will remit Rs.69,160 to Aarb)Aar will remit Rs.69,160 to Barc)Aar will remit Rs.69,000 to Bard)Bar will remit Rs.69,000 to AarCorrect answer is option 'A'. 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 Aar and Bar were partners in a joint venture sharing profits and losses in the proportion of 4/5th and 1/5th respectively. Aar supplies goods to the value of Rs.50,000 and incurs expenses amounting to Rs.5,400. Bar supplies goods to the value of Rs.14,000 and his expense amount to Rs.800. Bar sells goods on behalf of the joint venture and realizes Rs.92,000. Bar is entitled to a commission of 5 percent on sales. Bar settles his account by bank draft. What will be the final remittance?a)Bar will remit Rs.69,160 to Aarb)Aar will remit Rs.69,160 to Barc)Aar will remit Rs.69,000 to Bard)Bar will remit Rs.69,000 to AarCorrect answer is option 'A'. Can you explain this answer?.
Solutions for Aar and Bar were partners in a joint venture sharing profits and losses in the proportion of 4/5th and 1/5th respectively. Aar supplies goods to the value of Rs.50,000 and incurs expenses amounting to Rs.5,400. Bar supplies goods to the value of Rs.14,000 and his expense amount to Rs.800. Bar sells goods on behalf of the joint venture and realizes Rs.92,000. Bar is entitled to a commission of 5 percent on sales. Bar settles his account by bank draft. What will be the final remittance?a)Bar will remit Rs.69,160 to Aarb)Aar will remit Rs.69,160 to Barc)Aar will remit Rs.69,000 to Bard)Bar will remit Rs.69,000 to AarCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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Here you can find the meaning of Aar and Bar were partners in a joint venture sharing profits and losses in the proportion of 4/5th and 1/5th respectively. Aar supplies goods to the value of Rs.50,000 and incurs expenses amounting to Rs.5,400. Bar supplies goods to the value of Rs.14,000 and his expense amount to Rs.800. Bar sells goods on behalf of the joint venture and realizes Rs.92,000. Bar is entitled to a commission of 5 percent on sales. Bar settles his account by bank draft. What will be the final remittance?a)Bar will remit Rs.69,160 to Aarb)Aar will remit Rs.69,160 to Barc)Aar will remit Rs.69,000 to Bard)Bar will remit Rs.69,000 to AarCorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Aar and Bar were partners in a joint venture sharing profits and losses in the proportion of 4/5th and 1/5th respectively. Aar supplies goods to the value of Rs.50,000 and incurs expenses amounting to Rs.5,400. Bar supplies goods to the value of Rs.14,000 and his expense amount to Rs.800. Bar sells goods on behalf of the joint venture and realizes Rs.92,000. Bar is entitled to a commission of 5 percent on sales. Bar settles his account by bank draft. What will be the final remittance?a)Bar will remit Rs.69,160 to Aarb)Aar will remit Rs.69,160 to Barc)Aar will remit Rs.69,000 to Bard)Bar will remit Rs.69,000 to AarCorrect answer is option 'A'. Can you explain this answer?, a detailed solution for Aar and Bar were partners in a joint venture sharing profits and losses in the proportion of 4/5th and 1/5th respectively. Aar supplies goods to the value of Rs.50,000 and incurs expenses amounting to Rs.5,400. Bar supplies goods to the value of Rs.14,000 and his expense amount to Rs.800. Bar sells goods on behalf of the joint venture and realizes Rs.92,000. Bar is entitled to a commission of 5 percent on sales. Bar settles his account by bank draft. What will be the final remittance?a)Bar will remit Rs.69,160 to Aarb)Aar will remit Rs.69,160 to Barc)Aar will remit Rs.69,000 to Bard)Bar will remit Rs.69,000 to AarCorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of Aar and Bar were partners in a joint venture sharing profits and losses in the proportion of 4/5th and 1/5th respectively. Aar supplies goods to the value of Rs.50,000 and incurs expenses amounting to Rs.5,400. Bar supplies goods to the value of Rs.14,000 and his expense amount to Rs.800. Bar sells goods on behalf of the joint venture and realizes Rs.92,000. Bar is entitled to a commission of 5 percent on sales. Bar settles his account by bank draft. What will be the final remittance?a)Bar will remit Rs.69,160 to Aarb)Aar will remit Rs.69,160 to Barc)Aar will remit Rs.69,000 to Bard)Bar will remit Rs.69,000 to AarCorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Aar and Bar were partners in a joint venture sharing profits and losses in the proportion of 4/5th and 1/5th respectively. Aar supplies goods to the value of Rs.50,000 and incurs expenses amounting to Rs.5,400. Bar supplies goods to the value of Rs.14,000 and his expense amount to Rs.800. Bar sells goods on behalf of the joint venture and realizes Rs.92,000. Bar is entitled to a commission of 5 percent on sales. Bar settles his account by bank draft. What will be the final remittance?a)Bar will remit Rs.69,160 to Aarb)Aar will remit Rs.69,160 to Barc)Aar will remit Rs.69,000 to Bard)Bar will remit Rs.69,000 to AarCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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