CA Foundation Exam > CA Foundation Questions > A and B were partners in a joint venture shar...
Start Learning for Free
A and B were partners in a joint venture sharing profits and losses in the proportion of 3/5th and 2/5th respectively. A supplies goods to the value of Rs. 60,000 and incurs expenses amounting Rs. 6,000. B supplies goods to the value of Rs. 14,000 and his expenses amount to Rs. 1,000. B sells goods on behalf of the joint venture and realizes Rs. 1,00,000. B entitled to a commission of 5% on sales. B settles his account by bank draft. Find out the profit on venture?
- a)Rs. 14,400
- b)Rs. 14,000
- c)Rs. 13,000
- d)Rs. 13,200
Correct answer is option 'B'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
A and B were partners in a joint venture sharing profits and losses in...
Given information:
- A and B are partners in a joint venture sharing profits and losses in the proportion of 3/5th and 2/5th respectively.
- A supplies goods worth Rs. 60,000 and incurs expenses of Rs. 6,000.
- B supplies goods worth Rs. 14,000 and incurs expenses of Rs. 1,000.
- B sells goods on behalf of the joint venture and realizes Rs. 1,00,000.
- B is entitled to a commission of 5% on sales.
- B settles his account by bank draft.
To find: Profit on venture
Solution:
1. Calculation of total expenses incurred by the joint venture:
Total expenses = Expenses of A + Expenses of B
Total expenses = Rs. 6,000 + Rs. 1,000
Total expenses = Rs. 7,000
2. Calculation of total sales:
Total sales = Sales realized by B + B's commission
Total sales = Rs. 1,00,000 + (5% of Rs. 1,00,000)
Total sales = Rs. 1,05,000
3. Calculation of total cost of goods sold:
Total cost of goods sold = Cost of goods supplied by A + Cost of goods supplied by B + Total expenses
Total cost of goods sold = Rs. 60,000 + Rs. 14,000 + Rs. 7,000
Total cost of goods sold = Rs. 81,000
4. Calculation of profit on venture:
Profit on venture = Total sales - Total cost of goods sold
Profit on venture = Rs. 1,05,000 - Rs. 81,000
Profit on venture = Rs. 24,000
5. Calculation of profit of A and B:
Profit of A = (3/5) * Rs. 24,000
Profit of A = Rs. 14,400
Profit of B = (2/5) * Rs. 24,000
Profit of B = Rs. 9,600
6. Settlement of accounts:
B settles his account by bank draft, so A receives Rs. 14,400 and B receives Rs. 9,600 as their profits.
Therefore, the correct answer is option B, i.e., Rs. 14,000.
- A and B are partners in a joint venture sharing profits and losses in the proportion of 3/5th and 2/5th respectively.
- A supplies goods worth Rs. 60,000 and incurs expenses of Rs. 6,000.
- B supplies goods worth Rs. 14,000 and incurs expenses of Rs. 1,000.
- B sells goods on behalf of the joint venture and realizes Rs. 1,00,000.
- B is entitled to a commission of 5% on sales.
- B settles his account by bank draft.
To find: Profit on venture
Solution:
1. Calculation of total expenses incurred by the joint venture:
Total expenses = Expenses of A + Expenses of B
Total expenses = Rs. 6,000 + Rs. 1,000
Total expenses = Rs. 7,000
2. Calculation of total sales:
Total sales = Sales realized by B + B's commission
Total sales = Rs. 1,00,000 + (5% of Rs. 1,00,000)
Total sales = Rs. 1,05,000
3. Calculation of total cost of goods sold:
Total cost of goods sold = Cost of goods supplied by A + Cost of goods supplied by B + Total expenses
Total cost of goods sold = Rs. 60,000 + Rs. 14,000 + Rs. 7,000
Total cost of goods sold = Rs. 81,000
4. Calculation of profit on venture:
Profit on venture = Total sales - Total cost of goods sold
Profit on venture = Rs. 1,05,000 - Rs. 81,000
Profit on venture = Rs. 24,000
5. Calculation of profit of A and B:
Profit of A = (3/5) * Rs. 24,000
Profit of A = Rs. 14,400
Profit of B = (2/5) * Rs. 24,000
Profit of B = Rs. 9,600
6. Settlement of accounts:
B settles his account by bank draft, so A receives Rs. 14,400 and B receives Rs. 9,600 as their profits.
Therefore, the correct answer is option B, i.e., Rs. 14,000.
Free Test
FREE
| Start Free Test |
Community Answer
A and B were partners in a joint venture sharing profits and losses in...
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
A and B were partners in a joint venture sharing profits and losses in the proportion of 3/5thand 2/5threspectively. A supplies goods to the value of Rs. 60,000 and incurs expenses amounting Rs. 6,000. B supplies goods to the value of Rs. 14,000 and his expenses amount to Rs. 1,000. B sells goods on behalf of the joint venture and realizes Rs. 1,00,000. B entitled to a commission of 5% on sales. B settles his account by bank draft. Find out the profit on venture?a)Rs. 14,400b)Rs. 14,000c)Rs. 13,000d)Rs. 13,200Correct answer is option 'B'. Can you explain this answer?
Question Description
A and B were partners in a joint venture sharing profits and losses in the proportion of 3/5thand 2/5threspectively. A supplies goods to the value of Rs. 60,000 and incurs expenses amounting Rs. 6,000. B supplies goods to the value of Rs. 14,000 and his expenses amount to Rs. 1,000. B sells goods on behalf of the joint venture and realizes Rs. 1,00,000. B entitled to a commission of 5% on sales. B settles his account by bank draft. Find out the profit on venture?a)Rs. 14,400b)Rs. 14,000c)Rs. 13,000d)Rs. 13,200Correct answer is option 'B'. 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 were partners in a joint venture sharing profits and losses in the proportion of 3/5thand 2/5threspectively. A supplies goods to the value of Rs. 60,000 and incurs expenses amounting Rs. 6,000. B supplies goods to the value of Rs. 14,000 and his expenses amount to Rs. 1,000. B sells goods on behalf of the joint venture and realizes Rs. 1,00,000. B entitled to a commission of 5% on sales. B settles his account by bank draft. Find out the profit on venture?a)Rs. 14,400b)Rs. 14,000c)Rs. 13,000d)Rs. 13,200Correct answer is option 'B'. 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 were partners in a joint venture sharing profits and losses in the proportion of 3/5thand 2/5threspectively. A supplies goods to the value of Rs. 60,000 and incurs expenses amounting Rs. 6,000. B supplies goods to the value of Rs. 14,000 and his expenses amount to Rs. 1,000. B sells goods on behalf of the joint venture and realizes Rs. 1,00,000. B entitled to a commission of 5% on sales. B settles his account by bank draft. Find out the profit on venture?a)Rs. 14,400b)Rs. 14,000c)Rs. 13,000d)Rs. 13,200Correct answer is option 'B'. Can you explain this answer?.
A and B were partners in a joint venture sharing profits and losses in the proportion of 3/5thand 2/5threspectively. A supplies goods to the value of Rs. 60,000 and incurs expenses amounting Rs. 6,000. B supplies goods to the value of Rs. 14,000 and his expenses amount to Rs. 1,000. B sells goods on behalf of the joint venture and realizes Rs. 1,00,000. B entitled to a commission of 5% on sales. B settles his account by bank draft. Find out the profit on venture?a)Rs. 14,400b)Rs. 14,000c)Rs. 13,000d)Rs. 13,200Correct answer is option 'B'. 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 were partners in a joint venture sharing profits and losses in the proportion of 3/5thand 2/5threspectively. A supplies goods to the value of Rs. 60,000 and incurs expenses amounting Rs. 6,000. B supplies goods to the value of Rs. 14,000 and his expenses amount to Rs. 1,000. B sells goods on behalf of the joint venture and realizes Rs. 1,00,000. B entitled to a commission of 5% on sales. B settles his account by bank draft. Find out the profit on venture?a)Rs. 14,400b)Rs. 14,000c)Rs. 13,000d)Rs. 13,200Correct answer is option 'B'. 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 were partners in a joint venture sharing profits and losses in the proportion of 3/5thand 2/5threspectively. A supplies goods to the value of Rs. 60,000 and incurs expenses amounting Rs. 6,000. B supplies goods to the value of Rs. 14,000 and his expenses amount to Rs. 1,000. B sells goods on behalf of the joint venture and realizes Rs. 1,00,000. B entitled to a commission of 5% on sales. B settles his account by bank draft. Find out the profit on venture?a)Rs. 14,400b)Rs. 14,000c)Rs. 13,000d)Rs. 13,200Correct answer is option 'B'. Can you explain this answer?.
Solutions for A and B were partners in a joint venture sharing profits and losses in the proportion of 3/5thand 2/5threspectively. A supplies goods to the value of Rs. 60,000 and incurs expenses amounting Rs. 6,000. B supplies goods to the value of Rs. 14,000 and his expenses amount to Rs. 1,000. B sells goods on behalf of the joint venture and realizes Rs. 1,00,000. B entitled to a commission of 5% on sales. B settles his account by bank draft. Find out the profit on venture?a)Rs. 14,400b)Rs. 14,000c)Rs. 13,000d)Rs. 13,200Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of A and B were partners in a joint venture sharing profits and losses in the proportion of 3/5thand 2/5threspectively. A supplies goods to the value of Rs. 60,000 and incurs expenses amounting Rs. 6,000. B supplies goods to the value of Rs. 14,000 and his expenses amount to Rs. 1,000. B sells goods on behalf of the joint venture and realizes Rs. 1,00,000. B entitled to a commission of 5% on sales. B settles his account by bank draft. Find out the profit on venture?a)Rs. 14,400b)Rs. 14,000c)Rs. 13,000d)Rs. 13,200Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
A and B were partners in a joint venture sharing profits and losses in the proportion of 3/5thand 2/5threspectively. A supplies goods to the value of Rs. 60,000 and incurs expenses amounting Rs. 6,000. B supplies goods to the value of Rs. 14,000 and his expenses amount to Rs. 1,000. B sells goods on behalf of the joint venture and realizes Rs. 1,00,000. B entitled to a commission of 5% on sales. B settles his account by bank draft. Find out the profit on venture?a)Rs. 14,400b)Rs. 14,000c)Rs. 13,000d)Rs. 13,200Correct answer is option 'B'. Can you explain this answer?, a detailed solution for A and B were partners in a joint venture sharing profits and losses in the proportion of 3/5thand 2/5threspectively. A supplies goods to the value of Rs. 60,000 and incurs expenses amounting Rs. 6,000. B supplies goods to the value of Rs. 14,000 and his expenses amount to Rs. 1,000. B sells goods on behalf of the joint venture and realizes Rs. 1,00,000. B entitled to a commission of 5% on sales. B settles his account by bank draft. Find out the profit on venture?a)Rs. 14,400b)Rs. 14,000c)Rs. 13,000d)Rs. 13,200Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of A and B were partners in a joint venture sharing profits and losses in the proportion of 3/5thand 2/5threspectively. A supplies goods to the value of Rs. 60,000 and incurs expenses amounting Rs. 6,000. B supplies goods to the value of Rs. 14,000 and his expenses amount to Rs. 1,000. B sells goods on behalf of the joint venture and realizes Rs. 1,00,000. B entitled to a commission of 5% on sales. B settles his account by bank draft. Find out the profit on venture?a)Rs. 14,400b)Rs. 14,000c)Rs. 13,000d)Rs. 13,200Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A and B were partners in a joint venture sharing profits and losses in the proportion of 3/5thand 2/5threspectively. A supplies goods to the value of Rs. 60,000 and incurs expenses amounting Rs. 6,000. B supplies goods to the value of Rs. 14,000 and his expenses amount to Rs. 1,000. B sells goods on behalf of the joint venture and realizes Rs. 1,00,000. B entitled to a commission of 5% on sales. B settles his account by bank draft. Find out the profit on venture?a)Rs. 14,400b)Rs. 14,000c)Rs. 13,000d)Rs. 13,200Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup