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. A drew a bill on B for an amount equivalent to 80% of original cost of goods. A got it discounted at Rs. 1, 50, 000. A's share of profit is

  1. Rs. 15, 300

  2. Rs. 27300

  3. Rs. 21300

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

 Profit of the Joint Venture = Rs (250,000 + 10,000 - 200,000 - 2000 - 12,500)                                            = Rs 45,500 Rs 2,000 being A's commission on purchase and Rs 12,500 being B's commission on sale

A's share of profit = 3/5*45500 = Rs 27,300

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