Multiple choice

A and B were partners in a joint venture sharing profits and losses in the proportion of 4/5th and l/5th respectively. A supplies goods to the value ofRs. 55,000 and incurs expenses amounting to Rs. 400, B supplies goods to the Value of Rs. 14,500 and his expenses amount to Rs. 300. B sells goods On behalf of the joint venture and realizes Rs. 92,000. B is entitled to a commission of 5 per cent of on sales. What will be the profit on venture ?

  1. Rs. 17,200

  2. Rs. 17,000

  3. Rs. 18,000

  4. Rs. 18,200
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Total costs = 55000 + 400 + 14500 + 300 = 70200. Sales = 92000. Commission = 5% of 92000 = 4600. Profit = Sales - Costs - Commission = 92000 - 70200 - 4600 = 17200.

AI explanation

To find the profit on the venture, we first sum the total costs, which includes goods supplied by A at Rs 55,000, A's expenses of Rs 400, goods supplied by B at Rs 14,500, and B's expenses of Rs 300. B is also entitled to a 5 per cent commission on the total sales of Rs 92,000, which calculates to Rs 4,600. By subtracting the total costs of Rs 70,200 and the commission of Rs 4,600 from the realization of Rs 92,000, we determine the profit on venture is Rs 17,200.

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