Multiple choice

Ansh and Vansh enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. Ansh provides biscuits from stock amounting to Rs. 10,000. He pays expenses amounting to Rs. 1,000. Vansh incurs further expenses on carriage Rs. 1,000. He receives cash for sales Rs. 15,000. He also takes over goods to the value of Rs. 2,000. Profit on venture will be

  1. Rs. 3,000

  2. Rs. 5,000

  3. Rs. 6,000

  4. Rs. 3,500
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Total investment: Ansh's goods (Rs. 10,000) + Ansh's expenses (Rs. 1,000) + Vansh's expenses (Rs. 1,000) = Rs. 12,000. Total proceeds: Cash sales (Rs. 15,000) + goods taken by Vansh (Rs. 2,000) = Rs. 17,000. Profit = Rs. 17,000 - Rs. 12,000 = Rs. 5,000. Since profits are shared equally, each partner gets Rs. 2,500, but the question asks for total profit on venture.

Keep practicing — related questions