Multiple choice

A, B & C enter into joint venture sharing profit & losses in the ratio of $2:2:1$. further details are as follows: Particulars A B C Material supplied 12,000 6,000 - Expenses paid 3,000 2,000 1,000 Sales proceeds - 20,000 10,000 Unsold stock taken - 2,000 500 Profit on joint venture = ?

  1. Rs$8,500$
  2. Rs$8,000$
  3. Rs$7,500$
  4. Rs$7,000$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Total Expenses = (12000+6000) + (3000+2000+1000) = 18000 + 6000 = 24000. Total Sales = 20000 + 10000 = 30000. Unsold stock = 2000 + 500 = 2500. Total value = 32500. Profit = 32500 - 24000 = 8500.

AI explanation

To calculate the profit on the joint venture, sum the sale proceeds and the value of unsold stock taken, then subtract the cost of materials supplied and expenses paid. Total sales proceeds are Rs 20,000 plus Rs 10,000, equaling Rs 30,000, and the total value of unsold stock taken is Rs 2,000 plus Rs 500, equaling Rs 2,500. Total materials supplied are Rs 12,000 plus Rs 6,000, and total expenses paid are Rs 3,000 plus Rs 2,000 plus Rs 1,000, so the total cost is Rs 24,000. The profit on joint venture is Rs 32,500 minus Rs 24,000, which equals Rs 8,500.

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