Multiple choice

M & Y entered into joint venture contributing Rs$45,000$ each into the joint bank account to share the profit or loss equally. It was also agreed to pay commission @ $5\%$ on the sale made by the ventures. Goods worth Rs$52,000$ was purchased and $50\%$ of the same was sold for Rs$35,000$ by M. Rs$4,500$ was spent on transportation. $25\%$ of goods bought were sold by Y for Rs$17,500$. Unsold goods were taken over at cost price by M & Y. For unsold goods taken over by M Joint Venture A/c will be credited for :

  1. Rs $6,500$
  2. Rs $6,000$
  3. Rs $13,000$
  4. Rs $7,500$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Total goods = 52000. M sold 50% (26000) for 35000. Y sold 25% (13000) for 17500. Unsold goods = 25% of 52000 = 13000. M takes over 50% of the remaining goods? The question implies M takes over the unsold portion. If M takes over all unsold goods (13000), the credit is 13000. If M takes over half of the unsold goods (6500), the credit is 6500.

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