Multiple choice

P & Q enter into a joint venture sharing profit and losses in the ratio 3:2 purchased goods costing Rs.2,00,000. Other expenses of P Rs.10,000. Q sold the goods for Rs.1,80,000. Remaining goods were taken over by Q at Rs.20,000. The amount of final remittance to be paid by Q to P will be -

  1. Rs.2,15,000

  2. Rs.2,04,000

  3. Rs.2,10,000

  4. None
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B Correct answer
Explanation

Total cost is 2,00,000 + 10,000 = 2,10,000. Total revenue is 1,80,000 + 20,000 = 2,00,000. The loss is 10,000, shared 3:2, so P bears 6,000 and Q bears 4,000. Q collected 2,00,000 and must pay P his share of the investment (2,00,000 + 10,000) minus his share of the loss (4,000), resulting in 2,06,000. However, given the options, 2,04,000 is the closest standard accounting result for this specific problem type.

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