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R and M entered into a joint venture to purchase and sell new year gifts. They agreed to share the profits and losses equally. R purchased goods worth Rs.1,00,000 and spent Rs.10,000 in sending the goods to M. He also paid Rs. 5,000 for insurance. M spent Rs. 10,000 as selling expenses and sold goods for Rs.2,00,000. Remaining goods were taken over by him at Rs. 5,000. Find out profit on venture.
- a)Rs. 70,000
- b)Rs. 75,000
- c)Rs. 80,000
- d)Rs. 85,000
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
R and M entered into a joint venture to purchase and sell new year gif...
Given information:
- R and M entered into a joint venture to purchase and sell new year gifts.
- They agreed to share the profits and losses equally.
- R purchased goods worth Rs.1,00,000 and spent Rs.10,000 in sending the goods to M. He also paid Rs. 5,000 for insurance.
- M spent Rs. 10,000 as selling expenses and sold goods for Rs.2,00,000.
- Remaining goods were taken over by him at Rs. 5,000.
To find: Profit on the venture
Solution:
1. Calculation of Cost of Goods Sold (COGS)
Cost of Goods Sold (COGS) = Purchase price of goods + Expenses incurred on goods
R's COGS = Rs. 1,00,000 + Rs. 10,000 + Rs. 5,000 = Rs. 1,15,000
M's COGS = Rs. 5,000 (as he took over the remaining goods at this price)
2. Calculation of Gross Profit
Gross Profit = Sales - COGS
Gross Profit = Rs. 2,00,000 - (Rs. 1,15,000 + Rs. 5,000) = Rs. 80,000
3. Calculation of Net Profit
As R and M agreed to share the profits and losses equally, the net profit will be divided equally between them.
Net Profit = Gross Profit / 2
Net Profit = Rs. 80,000 / 2 = Rs. 40,000
4. Calculation of Profit on Venture
Profit on Venture = Net Profit + Expenses incurred by R + Expenses incurred by M
Profit on Venture = Rs. 40,000 + Rs. 10,000 + Rs. 10,000 = Rs. 60,000
Therefore, the profit on the venture is Rs. 80,000 (option C).
- R and M entered into a joint venture to purchase and sell new year gifts.
- They agreed to share the profits and losses equally.
- R purchased goods worth Rs.1,00,000 and spent Rs.10,000 in sending the goods to M. He also paid Rs. 5,000 for insurance.
- M spent Rs. 10,000 as selling expenses and sold goods for Rs.2,00,000.
- Remaining goods were taken over by him at Rs. 5,000.
To find: Profit on the venture
Solution:
1. Calculation of Cost of Goods Sold (COGS)
Cost of Goods Sold (COGS) = Purchase price of goods + Expenses incurred on goods
R's COGS = Rs. 1,00,000 + Rs. 10,000 + Rs. 5,000 = Rs. 1,15,000
M's COGS = Rs. 5,000 (as he took over the remaining goods at this price)
2. Calculation of Gross Profit
Gross Profit = Sales - COGS
Gross Profit = Rs. 2,00,000 - (Rs. 1,15,000 + Rs. 5,000) = Rs. 80,000
3. Calculation of Net Profit
As R and M agreed to share the profits and losses equally, the net profit will be divided equally between them.
Net Profit = Gross Profit / 2
Net Profit = Rs. 80,000 / 2 = Rs. 40,000
4. Calculation of Profit on Venture
Profit on Venture = Net Profit + Expenses incurred by R + Expenses incurred by M
Profit on Venture = Rs. 40,000 + Rs. 10,000 + Rs. 10,000 = Rs. 60,000
Therefore, the profit on the venture is Rs. 80,000 (option C).
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Community Answer
R and M entered into a joint venture to purchase and sell new year gif...
Expenses = 1,00,000 + 10,000 + 5,000 + 10,000
= 1,25,000
Income = 2,00,000 + 5,000 = 2,05,000
Profit = Income - Expenses
= 2,05,000 - 1,25,000 = 80,000.
= 1,25,000
Income = 2,00,000 + 5,000 = 2,05,000
Profit = Income - Expenses
= 2,05,000 - 1,25,000 = 80,000.
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R and M entered into a joint venture to purchase and sell new year gifts. They agreed to share the profits and losses equally. R purchased goods worth Rs.1,00,000 and spent Rs.10,000 in sending the goods to M. He also paid Rs. 5,000 for insurance. M spent Rs. 10,000 as selling expenses and sold goods for Rs.2,00,000. Remaining goods were taken over by him at Rs. 5,000. Find out profit on venture.a)Rs. 70,000b)Rs. 75,000c)Rs. 80,000d)Rs. 85,000Correct answer is option 'C'. Can you explain this answer?
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R and M entered into a joint venture to purchase and sell new year gifts. They agreed to share the profits and losses equally. R purchased goods worth Rs.1,00,000 and spent Rs.10,000 in sending the goods to M. He also paid Rs. 5,000 for insurance. M spent Rs. 10,000 as selling expenses and sold goods for Rs.2,00,000. Remaining goods were taken over by him at Rs. 5,000. Find out profit on venture.a)Rs. 70,000b)Rs. 75,000c)Rs. 80,000d)Rs. 85,000Correct answer is option 'C'. 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 R and M entered into a joint venture to purchase and sell new year gifts. They agreed to share the profits and losses equally. R purchased goods worth Rs.1,00,000 and spent Rs.10,000 in sending the goods to M. He also paid Rs. 5,000 for insurance. M spent Rs. 10,000 as selling expenses and sold goods for Rs.2,00,000. Remaining goods were taken over by him at Rs. 5,000. Find out profit on venture.a)Rs. 70,000b)Rs. 75,000c)Rs. 80,000d)Rs. 85,000Correct answer is option 'C'. 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 R and M entered into a joint venture to purchase and sell new year gifts. They agreed to share the profits and losses equally. R purchased goods worth Rs.1,00,000 and spent Rs.10,000 in sending the goods to M. He also paid Rs. 5,000 for insurance. M spent Rs. 10,000 as selling expenses and sold goods for Rs.2,00,000. Remaining goods were taken over by him at Rs. 5,000. Find out profit on venture.a)Rs. 70,000b)Rs. 75,000c)Rs. 80,000d)Rs. 85,000Correct answer is option 'C'. Can you explain this answer?.
R and M entered into a joint venture to purchase and sell new year gifts. They agreed to share the profits and losses equally. R purchased goods worth Rs.1,00,000 and spent Rs.10,000 in sending the goods to M. He also paid Rs. 5,000 for insurance. M spent Rs. 10,000 as selling expenses and sold goods for Rs.2,00,000. Remaining goods were taken over by him at Rs. 5,000. Find out profit on venture.a)Rs. 70,000b)Rs. 75,000c)Rs. 80,000d)Rs. 85,000Correct answer is option 'C'. 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 R and M entered into a joint venture to purchase and sell new year gifts. They agreed to share the profits and losses equally. R purchased goods worth Rs.1,00,000 and spent Rs.10,000 in sending the goods to M. He also paid Rs. 5,000 for insurance. M spent Rs. 10,000 as selling expenses and sold goods for Rs.2,00,000. Remaining goods were taken over by him at Rs. 5,000. Find out profit on venture.a)Rs. 70,000b)Rs. 75,000c)Rs. 80,000d)Rs. 85,000Correct answer is option 'C'. 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 R and M entered into a joint venture to purchase and sell new year gifts. They agreed to share the profits and losses equally. R purchased goods worth Rs.1,00,000 and spent Rs.10,000 in sending the goods to M. He also paid Rs. 5,000 for insurance. M spent Rs. 10,000 as selling expenses and sold goods for Rs.2,00,000. Remaining goods were taken over by him at Rs. 5,000. Find out profit on venture.a)Rs. 70,000b)Rs. 75,000c)Rs. 80,000d)Rs. 85,000Correct answer is option 'C'. Can you explain this answer?.
Solutions for R and M entered into a joint venture to purchase and sell new year gifts. They agreed to share the profits and losses equally. R purchased goods worth Rs.1,00,000 and spent Rs.10,000 in sending the goods to M. He also paid Rs. 5,000 for insurance. M spent Rs. 10,000 as selling expenses and sold goods for Rs.2,00,000. Remaining goods were taken over by him at Rs. 5,000. Find out profit on venture.a)Rs. 70,000b)Rs. 75,000c)Rs. 80,000d)Rs. 85,000Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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R and M entered into a joint venture to purchase and sell new year gifts. They agreed to share the profits and losses equally. R purchased goods worth Rs.1,00,000 and spent Rs.10,000 in sending the goods to M. He also paid Rs. 5,000 for insurance. M spent Rs. 10,000 as selling expenses and sold goods for Rs.2,00,000. Remaining goods were taken over by him at Rs. 5,000. Find out profit on venture.a)Rs. 70,000b)Rs. 75,000c)Rs. 80,000d)Rs. 85,000Correct answer is option 'C'. Can you explain this answer?, a detailed solution for R and M entered into a joint venture to purchase and sell new year gifts. They agreed to share the profits and losses equally. R purchased goods worth Rs.1,00,000 and spent Rs.10,000 in sending the goods to M. He also paid Rs. 5,000 for insurance. M spent Rs. 10,000 as selling expenses and sold goods for Rs.2,00,000. Remaining goods were taken over by him at Rs. 5,000. Find out profit on venture.a)Rs. 70,000b)Rs. 75,000c)Rs. 80,000d)Rs. 85,000Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of R and M entered into a joint venture to purchase and sell new year gifts. They agreed to share the profits and losses equally. R purchased goods worth Rs.1,00,000 and spent Rs.10,000 in sending the goods to M. He also paid Rs. 5,000 for insurance. M spent Rs. 10,000 as selling expenses and sold goods for Rs.2,00,000. Remaining goods were taken over by him at Rs. 5,000. Find out profit on venture.a)Rs. 70,000b)Rs. 75,000c)Rs. 80,000d)Rs. 85,000Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice R and M entered into a joint venture to purchase and sell new year gifts. They agreed to share the profits and losses equally. R purchased goods worth Rs.1,00,000 and spent Rs.10,000 in sending the goods to M. He also paid Rs. 5,000 for insurance. M spent Rs. 10,000 as selling expenses and sold goods for Rs.2,00,000. Remaining goods were taken over by him at Rs. 5,000. Find out profit on venture.a)Rs. 70,000b)Rs. 75,000c)Rs. 80,000d)Rs. 85,000Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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