Multiple choice

A & B entered in a joint venture sharing profits and losses in the ratio of 3:2. A supplies goods to the value of Rs.80,000 and incurs expenses Rs.6,000. B supplies goods to the value of Rs.14,000 and his expenses amount to Rs.2,000. B sells goods on behalf of the joint venture and realizes Rs.1,50,000. B entitled to a commission of 5% on sales. Find out A's share of profit on venture?

  1. Rs.24,300

  2. Rs.25,000

  3. Rs.26,000

  4. Rs.20,300
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Total sales = 150,000. Commission = 5% of 150,000 = 7,500. Total costs = 80,000 + 6,000 + 14,000 + 2,000 = 102,000. Profit = 150,000 - 102,000 - 7,500 = 40,500. A's share = 40,500 * (3/5) = 24,300.

AI explanation

The total expenses for the venture include A's contributions of Rs. 86,000 and B's contributions of Rs. 16,000, while the sales realization is Rs. 1,50,000. B's commission of 5% on sales amounts to Rs. 7,500. The net profit of the venture is calculated as Rs. 1,50,000 minus Rs. 1,02,000 and Rs. 7,500, leaving a profit of Rs. 40,500. A's share of this profit based on the 3:2 ratio is 3/5 of Rs. 40,500, which is Rs. 24,300.

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