Multiple choice

A & B enter into a joint venture sharing profit & losses in the ratio of $2:1$. A purchased goods costing Rs$2,00,000$. B sold the goods for $Rs.2,50,000$. A is entitled to get $1\%$ commission on purchase and B is entitled to get $5\%$ commission on sales. The profit on venture will be :

  1. Rs$35,500$
  2. Rs$36,000$
  3. Rs$34,000$
  4. Rs$38,000$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Purchase cost = 200,000. Commission to A = 1% of 200,000 = 2,000. Sales = 250,000. Commission to B = 5% of 250,000 = 12,500. Total cost = 200,000 + 2,000 + 12,500 = 214,500. Profit = 250,000 - 214,500 = 35,500.

AI explanation

To find the profit on the venture, we calculate total sales and subtract the cost of goods along with all commissions. The cost of goods is Rs 2,00,000, sales are Rs 2,50,000, A's purchase commission is 1% of Rs 2,00,000 which is Rs 2,000, and B's sales commission is 5% of Rs 2,50,000 which is Rs 12,500. The net profit is calculated as Rs 2,50,000 minus Rs 2,00,000 minus Rs 2,000 minus Rs 12,500, resulting in Rs 35,500.

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