Question

In: Accounting

A for joint venture with B, purchased goods costing Rs. 2,00,000. B sold the goods for Rs. 2,80,000

A for joint venture with B, purchased goods costing Rs. 2,00,000. B sold the goods for Rs. 2,80,000. Unsold material costing Rs. 10,000 was taken over by A at Rs. 8,000. A is entitled to get 1% commission on purchases. B is entitled to get 2% commission on sales, profit on venture will be:
A) Rs. 80,000
B) Rs. 80,800
C) Rs. 81,200
D) Rs. 80,400

Solutions

Expert Solution

Solution: The answer is D) Rs. 80,400.

Working-

Sales value of the goods Rs. 2,80,000
Add: Goods taken over by A Rs. 8,000
Less: Purchase price of the goods Rs. 2,00,000
Less: Commission charged by A (Rs. 2,00,000 * 1%) Rs. 2,000
Less: Commission charged by B ( Rs. 2,80,000 * 2%) Rs. 5,600
Profit on venture Rs. 80,400

ekkarill92 answered 2 years ago
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