Multiple choice

A and B enter into joint venture sharing profit and losses equally. A purchased 100 kg of rice @ Rs. 20 per kg. Brokerage paid Rs. 200, carriage paid Rs. 300. B sold 90 kg of rice @ Rs. 22 per kg. Balance rice were taken over by B at cost. The value of rice taken over to be recorded in joint venture will be

  1. Rs. 200

  2. Rs. 250

  3. Rs. 230

  4. Rs. 220
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Purchase price of 100 kg rice              =Rs 2,000

  • Brokerage paid                                   =Rs 200 +Carriage Paid                                       =Rs 300 Total Cost of 100 kg rice                       =Rs 2500 Cost of 1kg Rice                                     =Rs 25 Rice taken over by B                              = 10 kgs thus,Cost of rice taken over by B                 =Rs (25*10)                                                                   = Rs 250 

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