Multiple choice

A & B enter into a joint venture sharing profits and losses in the ratio of $3:2$. They opened joint bank account. A & B contributed $Rs.50000$ and $Rs.40000$. A's purchase & expenses are $Rs.35000$ and he also supplied materials $Rs.3000$ from his own stock. B's purchase & expenses are $Rs.28000$. All the goods are sold at $Rs.94000$ except goods valued $Rs.2000$ was taken by B. Final amount payable to A & B respectively will be ____________.

  1. $Rs.50000$ and $Rs.71000$
  2. $Rs.71000$ and $Rs.50000$
  3. $Rs.74000$ and $Rs.46000$
  4. $Rs.46000$ and $Rs.74000$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Total sales = 94000 + 2000 (goods taken by B) = 96000. Total expenses = 35000 + 3000 + 28000 = 66000. Profit = 96000 - 66000 = 30000. Profit share A = 18000, B = 12000. A's total = 50000 + 35000 + 3000 + 18000 = 106000 (minus sales). This accounting problem requires balancing the joint venture account correctly to reach 71000 and 50000.