Question

Q.7 : A and B entered into joint venture. A supplied goods worth Rs. 7,000 and incurred expenses of Rs. 300. B sold the goods for Rs. 10,000 and incurred expenses of Rs. 500. What is the amount of final remittance?
A) Rs. 8,400
B) Rs. 7,900
C) Rs. 8,900
D) None of these

Q.8 : M and N enter into a joint venture where M supplies goods worth Rs. 6000 and spends Rs. 300 on expenses. N sells the entire lot for Rs. 7,800 meeting selling expenses amounting to Rs. 300. Profit sharing ratio equal. N remits to M the amount due. The amount of remittance will be:
A) Rs. 6,900
B) Rs. 7,500
C) Rs. 6,300
D) Rs. 6,600

Answer 1

Note : All amounts in RS.

7)

Particulars	A	B
Goods supplied	7000	-
Expenses incurred	300	500
Total	7300	500

Total investment by both A and B = 7300+500=7800

Sales by B. 10,000

Less Total investment (7800)

Both share      2200

Share of A (Both share equally) 50% of 2200 = 1100

Final remittance by B to A = 7300+1100= 8400

Answer Option (A)

8) Profit = sales - cost = 7800-6000 = 1800

Profit shared equally hence both get 50% share which is 50% of 1800 = 900 each by M and N

Amount to be remitted by N to M = sale proceeds - selling expenses - N share of profit

=7800-300-900 = 6600

Answer option (D)