Multiple choice

A and B enter into a Joint Venture sharing profits and losses in the ratio 3 : 2. A purchased good costing 2,00,000. Other expenses of A 10,000. B sold the goods for 1,80,000. Remaining goods were taken over by B at 20,000. The amount of final remittance to be paid by B to A will be:

  1. 2,15,000

  2. 2,05,000

  3. 2,10,000

  4. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
AI explanation

To find the final remittance, calculate the total amount B owes to A by adding A's purchases and expenses, which is 2,00,000 plus 10,000, for a total of 2,10,000. B receives 1,80,000 from the sales and values the remaining goods taken over at 20,000, giving B a total credit of 2,00,000. The difference between A's total of 2,10,000 and B's total of 2,00,000 is 10,000, but since B sold the goods at a loss, the final joint venture settlement amount does not match the provided options, leading to none of these.

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