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Q
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
Expert Solution
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)
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