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A and B enter into a joint venture sharing profit and losses in the ratio 3:2. A will purchase goods and B will affect the sale. A purchase goods costing Rs. 2,00,000. B sold it for Rs. 3,00,000. The venture is terminated after 3 months. A is entitled to get 10% interest on capital invested irrespective of utilization period. The amount of interest received by A will be:
- a)Rs.20,000
- b)Rs.10,000
- c)Rs.15,000
- d)Rs.25,000
Correct answer is option 'A'. Can you explain this answer?
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A and B enter into a joint venture sharing profit and losses in the ra...
Interest on capital is charged for whole year because in question its clearly said that 10%interest on capital irrespect of utilization period i hope it clear to you
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A and B enter into a joint venture sharing profit and losses in the ra...
The Solution is as follows:
Given:
- The profit sharing ratio between A and B is 3:2.
- A purchases goods costing Rs. 2,00,000.
- B sells the goods for Rs. 3,00,000.
- The joint venture is terminated after 3 months.
- A is entitled to receive 10% interest on capital invested, regardless of the utilization period.
Calculating the Profit:
To calculate the profit, we need to find the total sales and the cost of goods sold.
Total Sales = Rs. 3,00,000
Cost of Goods Sold = Rs. 2,00,000
Profit = Total Sales - Cost of Goods Sold
Profit = Rs. 3,00,000 - Rs. 2,00,000
Profit = Rs. 1,00,000
Calculating the Share of Profit:
The profit is to be shared in the ratio of 3:2 between A and B.
A's Share = (3/5) * Profit
A's Share = (3/5) * Rs. 1,00,000
A's Share = Rs. 60,000
B's Share = (2/5) * Profit
B's Share = (2/5) * Rs. 1,00,000
B's Share = Rs. 40,000
Calculating A's Interest on Capital:
A is entitled to receive 10% interest on the capital invested, regardless of the utilization period.
A's Capital = Rs. 2,00,000
A's Interest = (10/100) * A's Capital
A's Interest = (10/100) * Rs. 2,00,000
A's Interest = Rs. 20,000
Total Amount Received by A:
The total amount received by A will be the sum of A's share of profit and A's interest on capital.
Total Amount Received by A = A's Share + A's Interest
Total Amount Received by A = Rs. 60,000 + Rs. 20,000
Total Amount Received by A = Rs. 80,000
Therefore, the amount of interest received by A is Rs. 20,000, which corresponds to option 'A'.
Given:
- The profit sharing ratio between A and B is 3:2.
- A purchases goods costing Rs. 2,00,000.
- B sells the goods for Rs. 3,00,000.
- The joint venture is terminated after 3 months.
- A is entitled to receive 10% interest on capital invested, regardless of the utilization period.
Calculating the Profit:
To calculate the profit, we need to find the total sales and the cost of goods sold.
Total Sales = Rs. 3,00,000
Cost of Goods Sold = Rs. 2,00,000
Profit = Total Sales - Cost of Goods Sold
Profit = Rs. 3,00,000 - Rs. 2,00,000
Profit = Rs. 1,00,000
Calculating the Share of Profit:
The profit is to be shared in the ratio of 3:2 between A and B.
A's Share = (3/5) * Profit
A's Share = (3/5) * Rs. 1,00,000
A's Share = Rs. 60,000
B's Share = (2/5) * Profit
B's Share = (2/5) * Rs. 1,00,000
B's Share = Rs. 40,000
Calculating A's Interest on Capital:
A is entitled to receive 10% interest on the capital invested, regardless of the utilization period.
A's Capital = Rs. 2,00,000
A's Interest = (10/100) * A's Capital
A's Interest = (10/100) * Rs. 2,00,000
A's Interest = Rs. 20,000
Total Amount Received by A:
The total amount received by A will be the sum of A's share of profit and A's interest on capital.
Total Amount Received by A = A's Share + A's Interest
Total Amount Received by A = Rs. 60,000 + Rs. 20,000
Total Amount Received by A = Rs. 80,000
Therefore, the amount of interest received by A is Rs. 20,000, which corresponds to option 'A'.
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A and B enter into a joint venture sharing profit and losses in the ratio 3:2. A will purchase goods and B will affect the sale. A purchase goods costing Rs. 2,00,000. B sold it for Rs. 3,00,000. The venture is terminated after 3 months. A is entitled to get 10% interest on capital invested irrespective of utilization period. The amount of interest received by A will be:a)Rs.20,000b)Rs.10,000c)Rs.15,000d)Rs.25,000Correct answer is option 'A'. Can you explain this answer?
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A and B enter into a joint venture sharing profit and losses in the ratio 3:2. A will purchase goods and B will affect the sale. A purchase goods costing Rs. 2,00,000. B sold it for Rs. 3,00,000. The venture is terminated after 3 months. A is entitled to get 10% interest on capital invested irrespective of utilization period. The amount of interest received by A will be:a)Rs.20,000b)Rs.10,000c)Rs.15,000d)Rs.25,000Correct 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 A and B enter into a joint venture sharing profit and losses in the ratio 3:2. A will purchase goods and B will affect the sale. A purchase goods costing Rs. 2,00,000. B sold it for Rs. 3,00,000. The venture is terminated after 3 months. A is entitled to get 10% interest on capital invested irrespective of utilization period. The amount of interest received by A will be:a)Rs.20,000b)Rs.10,000c)Rs.15,000d)Rs.25,000Correct 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 A and B enter into a joint venture sharing profit and losses in the ratio 3:2. A will purchase goods and B will affect the sale. A purchase goods costing Rs. 2,00,000. B sold it for Rs. 3,00,000. The venture is terminated after 3 months. A is entitled to get 10% interest on capital invested irrespective of utilization period. The amount of interest received by A will be:a)Rs.20,000b)Rs.10,000c)Rs.15,000d)Rs.25,000Correct answer is option 'A'. Can you explain this answer?.
A and B enter into a joint venture sharing profit and losses in the ratio 3:2. A will purchase goods and B will affect the sale. A purchase goods costing Rs. 2,00,000. B sold it for Rs. 3,00,000. The venture is terminated after 3 months. A is entitled to get 10% interest on capital invested irrespective of utilization period. The amount of interest received by A will be:a)Rs.20,000b)Rs.10,000c)Rs.15,000d)Rs.25,000Correct 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 A and B enter into a joint venture sharing profit and losses in the ratio 3:2. A will purchase goods and B will affect the sale. A purchase goods costing Rs. 2,00,000. B sold it for Rs. 3,00,000. The venture is terminated after 3 months. A is entitled to get 10% interest on capital invested irrespective of utilization period. The amount of interest received by A will be:a)Rs.20,000b)Rs.10,000c)Rs.15,000d)Rs.25,000Correct 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 A and B enter into a joint venture sharing profit and losses in the ratio 3:2. A will purchase goods and B will affect the sale. A purchase goods costing Rs. 2,00,000. B sold it for Rs. 3,00,000. The venture is terminated after 3 months. A is entitled to get 10% interest on capital invested irrespective of utilization period. The amount of interest received by A will be:a)Rs.20,000b)Rs.10,000c)Rs.15,000d)Rs.25,000Correct answer is option 'A'. Can you explain this answer?.
Solutions for A and B enter into a joint venture sharing profit and losses in the ratio 3:2. A will purchase goods and B will affect the sale. A purchase goods costing Rs. 2,00,000. B sold it for Rs. 3,00,000. The venture is terminated after 3 months. A is entitled to get 10% interest on capital invested irrespective of utilization period. The amount of interest received by A will be:a)Rs.20,000b)Rs.10,000c)Rs.15,000d)Rs.25,000Correct 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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A and B enter into a joint venture sharing profit and losses in the ratio 3:2. A will purchase goods and B will affect the sale. A purchase goods costing Rs. 2,00,000. B sold it for Rs. 3,00,000. The venture is terminated after 3 months. A is entitled to get 10% interest on capital invested irrespective of utilization period. The amount of interest received by A will be:a)Rs.20,000b)Rs.10,000c)Rs.15,000d)Rs.25,000Correct answer is option 'A'. Can you explain this answer?, a detailed solution for A and B enter into a joint venture sharing profit and losses in the ratio 3:2. A will purchase goods and B will affect the sale. A purchase goods costing Rs. 2,00,000. B sold it for Rs. 3,00,000. The venture is terminated after 3 months. A is entitled to get 10% interest on capital invested irrespective of utilization period. The amount of interest received by A will be:a)Rs.20,000b)Rs.10,000c)Rs.15,000d)Rs.25,000Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of A and B enter into a joint venture sharing profit and losses in the ratio 3:2. A will purchase goods and B will affect the sale. A purchase goods costing Rs. 2,00,000. B sold it for Rs. 3,00,000. The venture is terminated after 3 months. A is entitled to get 10% interest on capital invested irrespective of utilization period. The amount of interest received by A will be:a)Rs.20,000b)Rs.10,000c)Rs.15,000d)Rs.25,000Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
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