Multiple choice

N & Z enter into joint venture to sell TV sets. N send a draft of Rs$2,50,000$ to Z. Z purchased $200$ TV at a cost of Rs$2,000$ and paid freight Rs$2,000$ to sent it to N details of sales by N are as follows: $20$ TV set @ $3,000$ each at $10\%$ discount $100$ TV set @ $2,800$ each $80$ TV set @ $2,700$ each at $5\%$ discount. N settled the account by sending draft in favour of Z, profits being shared equally. Amount of draft = ?

  1. Rs$2,18,600$
  2. Rs$2,87,200$
  3. Rs$2,20,600$
  4. Rs$2,25,200$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The total sales proceeds are Rs. 54,000 + Rs. 2,80,000 + Rs. 2,05,200 = Rs. 5,39,200. Total cost including freight is Rs. 4,02,000, so the profit is Rs. 1,37,200 and N's half is Rs. 68,600. After adjusting the Rs. 2,50,000 draft, the settlement draft is Rs. 2,20,600.

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