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A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provided biscuits from his inventory Rs. 10,000. He paid expenses amounting to Rs. 1,000. V incurred further expenses on carriage Rs. 1,000. He received cash for sales Rs. 15,000. He also took over goods to the value of Rs. 2,000. The profit on joint venture will be
- a)Rs.3,000
- b)Rs.5,000
- c)Rs.6,000
- d)Rs.3,500
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
A and V enter into a joint venture to sell a consignment of biscuits s...
Joint Venture
A joint venture is a business agreement in which two or more parties agree to pool their resources to achieve a specific goal. In a joint venture, each party is responsible for contributing assets, such as money, property, or knowledge, and sharing the risks and profits of the venture.
Given Information
A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provided biscuits from his inventory Rs. 10,000. He paid expenses amounting to Rs. 1,000. V incurred further expenses on carriage Rs. 1,000. He received cash for sales Rs. 15,000. He also took over goods to the value of Rs. 2,000.
Calculation of Profit
Total Cost = A's inventory + A's expenses + V's expenses = Rs. 10,000 + Rs. 1,000 + Rs. 1,000 = Rs. 12,000
Total Revenue = Cash sales + Value of goods taken over by V = Rs. 15,000 + Rs. 2,000 = Rs. 17,000
Total Profit = Total Revenue - Total Cost = Rs. 17,000 - Rs. 12,000 = Rs. 5,000
Therefore, the profit on the joint venture will be Rs. 5,000, which will be shared equally between A and V.
Answer
The correct answer is option 'B' - Rs. 5,000.
A joint venture is a business agreement in which two or more parties agree to pool their resources to achieve a specific goal. In a joint venture, each party is responsible for contributing assets, such as money, property, or knowledge, and sharing the risks and profits of the venture.
Given Information
A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provided biscuits from his inventory Rs. 10,000. He paid expenses amounting to Rs. 1,000. V incurred further expenses on carriage Rs. 1,000. He received cash for sales Rs. 15,000. He also took over goods to the value of Rs. 2,000.
Calculation of Profit
Total Cost = A's inventory + A's expenses + V's expenses = Rs. 10,000 + Rs. 1,000 + Rs. 1,000 = Rs. 12,000
Total Revenue = Cash sales + Value of goods taken over by V = Rs. 15,000 + Rs. 2,000 = Rs. 17,000
Total Profit = Total Revenue - Total Cost = Rs. 17,000 - Rs. 12,000 = Rs. 5,000
Therefore, the profit on the joint venture will be Rs. 5,000, which will be shared equally between A and V.
Answer
The correct answer is option 'B' - Rs. 5,000.
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Community Answer
A and V enter into a joint venture to sell a consignment of biscuits s...
A provided goods worth 10000 it is debited to joint venture account he incurred 1000 expenses debited to join venture V incurred 1000 expenses so it is also debited to join venture Cash sales 15000 credited to join venture account closing stock taken over by V 2000 credited to joint venture account Joint venture profit equals to 15000+2000-10000-1000-1000 = 5000
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A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provided biscuits from his inventory Rs. 10,000. He paid expenses amounting to Rs. 1,000. V incurred further expenses on carriage Rs. 1,000. He received cash for sales Rs. 15,000. He also took over goods to the value of Rs. 2,000. The profit on joint venture will bea)Rs.3,000b)Rs.5,000c)Rs.6,000d)Rs.3,500Correct answer is option 'B'. Can you explain this answer?
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A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provided biscuits from his inventory Rs. 10,000. He paid expenses amounting to Rs. 1,000. V incurred further expenses on carriage Rs. 1,000. He received cash for sales Rs. 15,000. He also took over goods to the value of Rs. 2,000. The profit on joint venture will bea)Rs.3,000b)Rs.5,000c)Rs.6,000d)Rs.3,500Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provided biscuits from his inventory Rs. 10,000. He paid expenses amounting to Rs. 1,000. V incurred further expenses on carriage Rs. 1,000. He received cash for sales Rs. 15,000. He also took over goods to the value of Rs. 2,000. The profit on joint venture will bea)Rs.3,000b)Rs.5,000c)Rs.6,000d)Rs.3,500Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provided biscuits from his inventory Rs. 10,000. He paid expenses amounting to Rs. 1,000. V incurred further expenses on carriage Rs. 1,000. He received cash for sales Rs. 15,000. He also took over goods to the value of Rs. 2,000. The profit on joint venture will bea)Rs.3,000b)Rs.5,000c)Rs.6,000d)Rs.3,500Correct answer is option 'B'. Can you explain this answer?.
A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provided biscuits from his inventory Rs. 10,000. He paid expenses amounting to Rs. 1,000. V incurred further expenses on carriage Rs. 1,000. He received cash for sales Rs. 15,000. He also took over goods to the value of Rs. 2,000. The profit on joint venture will bea)Rs.3,000b)Rs.5,000c)Rs.6,000d)Rs.3,500Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provided biscuits from his inventory Rs. 10,000. He paid expenses amounting to Rs. 1,000. V incurred further expenses on carriage Rs. 1,000. He received cash for sales Rs. 15,000. He also took over goods to the value of Rs. 2,000. The profit on joint venture will bea)Rs.3,000b)Rs.5,000c)Rs.6,000d)Rs.3,500Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provided biscuits from his inventory Rs. 10,000. He paid expenses amounting to Rs. 1,000. V incurred further expenses on carriage Rs. 1,000. He received cash for sales Rs. 15,000. He also took over goods to the value of Rs. 2,000. The profit on joint venture will bea)Rs.3,000b)Rs.5,000c)Rs.6,000d)Rs.3,500Correct answer is option 'B'. Can you explain this answer?.
Solutions for A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provided biscuits from his inventory Rs. 10,000. He paid expenses amounting to Rs. 1,000. V incurred further expenses on carriage Rs. 1,000. He received cash for sales Rs. 15,000. He also took over goods to the value of Rs. 2,000. The profit on joint venture will bea)Rs.3,000b)Rs.5,000c)Rs.6,000d)Rs.3,500Correct answer is option 'B'. 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 A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provided biscuits from his inventory Rs. 10,000. He paid expenses amounting to Rs. 1,000. V incurred further expenses on carriage Rs. 1,000. He received cash for sales Rs. 15,000. He also took over goods to the value of Rs. 2,000. The profit on joint venture will bea)Rs.3,000b)Rs.5,000c)Rs.6,000d)Rs.3,500Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provided biscuits from his inventory Rs. 10,000. He paid expenses amounting to Rs. 1,000. V incurred further expenses on carriage Rs. 1,000. He received cash for sales Rs. 15,000. He also took over goods to the value of Rs. 2,000. The profit on joint venture will bea)Rs.3,000b)Rs.5,000c)Rs.6,000d)Rs.3,500Correct answer is option 'B'. Can you explain this answer?, a detailed solution for A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provided biscuits from his inventory Rs. 10,000. He paid expenses amounting to Rs. 1,000. V incurred further expenses on carriage Rs. 1,000. He received cash for sales Rs. 15,000. He also took over goods to the value of Rs. 2,000. The profit on joint venture will bea)Rs.3,000b)Rs.5,000c)Rs.6,000d)Rs.3,500Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provided biscuits from his inventory Rs. 10,000. He paid expenses amounting to Rs. 1,000. V incurred further expenses on carriage Rs. 1,000. He received cash for sales Rs. 15,000. He also took over goods to the value of Rs. 2,000. The profit on joint venture will bea)Rs.3,000b)Rs.5,000c)Rs.6,000d)Rs.3,500Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provided biscuits from his inventory Rs. 10,000. He paid expenses amounting to Rs. 1,000. V incurred further expenses on carriage Rs. 1,000. He received cash for sales Rs. 15,000. He also took over goods to the value of Rs. 2,000. The profit on joint venture will bea)Rs.3,000b)Rs.5,000c)Rs.6,000d)Rs.3,500Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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