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A and B enter into a joint venture sharing profits and losses in the ratio 3:2 . A purchased goods costing Rs.200000. B sold 95% of goods for Rs. 250000. A is entitled to get 1% commission on goods purchased and B is entitled to get 5% commission on sales. Remaining goods are stolen. What will be final remittance ?
a) B will remit Rs.215300 to A
b) B will remit Rs.223300 to A
c) B will remit Rs.206200 to A
d) B will remit Rs.218700 to A
Correct answer is "b" . Can you plzz explain this?
Most Upvoted Answer
A and B enter into a joint venture sharing profits and losses in the r...
Calculation of Profit and Loss:
- A and B's profit and loss sharing ratio is 3:2.
- Let the total cost of goods be x.
- A purchased goods worth Rs.200000, so B purchased goods worth (x-200000).
- Let the selling price of goods sold by B be y.
- B sold 95% of goods for Rs.250000, so the selling price of total goods is (y/0.95).
- A is entitled to get 1% commission on goods purchased, so A will get (0.01 * 200000) = Rs.2000 as commission.
- B is entitled to get 5% commission on sales, so B will get (0.05 * y) as commission.
- The remaining goods are stolen, so there is no revenue from them.
- The total profit or loss will be calculated as follows:
- Total revenue = (y/0.95)
- Total cost = x + (0.01 * 200000) + (0.05 * y)
- Total profit or loss = Total revenue - Total cost

Calculation of Final Remittance:
- Let the total profit or loss be z.
- A's share in profit or loss = (3/5)z
- B's share in profit or loss = (2/5)z
- B will remit the amount to A, so the final remittance will be:
- B's share in profit or loss - B's commission + A's commission = (2/5)z - (0.05 * y) + 2000
- Substituting the values of z, y, and A's and B's commission:
- Final remittance = (2/5)(Total revenue - Total cost) - (0.05 * 250000) + 2000
- Final remittance = (2/5)(y/0.95 - x - 0.05y) - 12500 + 2000
- Final remittance = (2/5)(0.95y - 1.05x) - 10500

After substituting the values of x and y, we get the final remittance as Rs.223300, which is option (b).
Community Answer
A and B enter into a joint venture sharing profits and losses in the r...
Purchase commission = 200000×1% = 2000. Sale commission = 250000 × 5% =12500. Profit = sale - CoGS =250000-200000-2000-12500 = 35500. A's profit ratio = 35500 × 3/5 = 21300. B will temit = 200000+2000+21300 = 223300 to A.
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A and B enter into a joint venture sharing profits and losses in the ratio 3:2 . A purchased goods costing Rs.200000. B sold 95% of goods for Rs. 250000. A is entitled to get 1% commission on goods purchased and B is entitled to get 5% commission on sales. Remaining goods are stolen. What will be final remittance ?a) B will remit Rs.215300 to Ab) B will remit Rs.223300 to Ac) B will remit Rs.206200 to Ad) B will remit Rs.218700 to A Correct answer is "b" . Can you plzz explain this?
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A and B enter into a joint venture sharing profits and losses in the ratio 3:2 . A purchased goods costing Rs.200000. B sold 95% of goods for Rs. 250000. A is entitled to get 1% commission on goods purchased and B is entitled to get 5% commission on sales. Remaining goods are stolen. What will be final remittance ?a) B will remit Rs.215300 to Ab) B will remit Rs.223300 to Ac) B will remit Rs.206200 to Ad) B will remit Rs.218700 to A Correct answer is "b" . Can you plzz explain this? 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 enter into a joint venture sharing profits and losses in the ratio 3:2 . A purchased goods costing Rs.200000. B sold 95% of goods for Rs. 250000. A is entitled to get 1% commission on goods purchased and B is entitled to get 5% commission on sales. Remaining goods are stolen. What will be final remittance ?a) B will remit Rs.215300 to Ab) B will remit Rs.223300 to Ac) B will remit Rs.206200 to Ad) B will remit Rs.218700 to A Correct answer is "b" . Can you plzz explain this? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B enter into a joint venture sharing profits and losses in the ratio 3:2 . A purchased goods costing Rs.200000. B sold 95% of goods for Rs. 250000. A is entitled to get 1% commission on goods purchased and B is entitled to get 5% commission on sales. Remaining goods are stolen. What will be final remittance ?a) B will remit Rs.215300 to Ab) B will remit Rs.223300 to Ac) B will remit Rs.206200 to Ad) B will remit Rs.218700 to A Correct answer is "b" . Can you plzz explain this?.
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Here you can find the meaning of A and B enter into a joint venture sharing profits and losses in the ratio 3:2 . A purchased goods costing Rs.200000. B sold 95% of goods for Rs. 250000. A is entitled to get 1% commission on goods purchased and B is entitled to get 5% commission on sales. Remaining goods are stolen. What will be final remittance ?a) B will remit Rs.215300 to Ab) B will remit Rs.223300 to Ac) B will remit Rs.206200 to Ad) B will remit Rs.218700 to A Correct answer is "b" . Can you plzz explain this? defined & explained in the simplest way possible. Besides giving the explanation of A and B enter into a joint venture sharing profits and losses in the ratio 3:2 . A purchased goods costing Rs.200000. B sold 95% of goods for Rs. 250000. A is entitled to get 1% commission on goods purchased and B is entitled to get 5% commission on sales. Remaining goods are stolen. What will be final remittance ?a) B will remit Rs.215300 to Ab) B will remit Rs.223300 to Ac) B will remit Rs.206200 to Ad) B will remit Rs.218700 to A Correct answer is "b" . Can you plzz explain this?, a detailed solution for A and B enter into a joint venture sharing profits and losses in the ratio 3:2 . A purchased goods costing Rs.200000. B sold 95% of goods for Rs. 250000. A is entitled to get 1% commission on goods purchased and B is entitled to get 5% commission on sales. Remaining goods are stolen. What will be final remittance ?a) B will remit Rs.215300 to Ab) B will remit Rs.223300 to Ac) B will remit Rs.206200 to Ad) B will remit Rs.218700 to A Correct answer is "b" . Can you plzz explain this? has been provided alongside types of A and B enter into a joint venture sharing profits and losses in the ratio 3:2 . A purchased goods costing Rs.200000. B sold 95% of goods for Rs. 250000. A is entitled to get 1% commission on goods purchased and B is entitled to get 5% commission on sales. Remaining goods are stolen. What will be final remittance ?a) B will remit Rs.215300 to Ab) B will remit Rs.223300 to Ac) B will remit Rs.206200 to Ad) B will remit Rs.218700 to A Correct answer is "b" . Can you plzz explain this? theory, EduRev gives you an ample number of questions to practice A and B enter into a joint venture sharing profits and losses in the ratio 3:2 . A purchased goods costing Rs.200000. B sold 95% of goods for Rs. 250000. A is entitled to get 1% commission on goods purchased and B is entitled to get 5% commission on sales. Remaining goods are stolen. What will be final remittance ?a) B will remit Rs.215300 to Ab) B will remit Rs.223300 to Ac) B will remit Rs.206200 to Ad) B will remit Rs.218700 to A Correct answer is "b" . Can you plzz explain this? tests, examples and also practice CA Foundation tests.
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