Multiple choice

A & B sharing profits & losses in the proportion $2:1$ in the joint venture. A keeps account of joint venture. B gave Rs$5,000$ to A for joint venture business. A prepared accounts and showed profits of Rs$2,250$. A settled B's Account. In the books of B, ______ profit is credited.

  1. $Rs 2,250$
  2. $Rs750$
  3. $Rs 1,500$
  4. $Rs5,750$
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B Correct answer
Explanation

Total profit is 2250. The profit sharing ratio is 2:1. B's share = (1/3) * 2250 = 750.

AI explanation

The total profit from the joint venture is Rs. 2250. Because A and B share profits and losses in the proportion of 2 : 1, B's share is calculated as half of the total profit. Therefore, the profit credited in the books of B is Rs. 750.

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