Multiple choice

A and B purchased a piece of land for Rs. 20, 000 and sold it for Rs. 60, 000 in 2005. Originally, A had contributed Rs. 12, 000 and B Rs. 8000. What will be the profit on venture?

  1. Rs. 40, 000

  2. Rs. 20, 000

  3. Rs. 60, 000

  4. Nil

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

 Purchase Consideration of land for Joint Venture = Rs20,000 Sale Consideration                                                       = Rs 60,000

Profit                                                                                =Rs (60000-20000)                                                                                          =Rs 40,000