Multiple choice

A and B enter into a joint venture sharing profit and loss in ratio 3 : 2. A purchased goods costing Rs. 2, 00, 000. B sold 95% 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. Remaining goods are stolen. A's share of profit is

  1. Rs. 15,300

  2. Rs. 21,300

  3. Rs. 18, 900

  4. none of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Profit for the Joint Venture = Rs{(2,50,000 + 10,000)-(2,00,000+2000+12500+10,000)}                                                 = Rs 25500 A's Share of profit                 = (3/5)*25,500                                                  = Rs 15,300 

Rs 10,000 being the amount of goods stolen.

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