Question

A and B were partners in a joint venture sharing profits and losses in the proportion of 4/5th and 1/5th respectively. A supplies goods to the value of 50,000 and incurs expenses amounting to 5,400. B supplies goods to the value of 14,000 and his expenses amount to 800, B sells goods at 87,400. B settles his account by bank draft. What will be the profit on venture?

• A. 17,200
• B. 17,000
• C. 18,000
• D. 18,200

Answer 1

The correct option is A 17,200

Joint Venture Account

Particulars	Amount	Particulars	Amount
To A's A/c Goods: 50000 Expenses: 5400	55400	By B's A/c (sales)	87400
To B's A/c Goods: 14000 Expenses: 800	14800
To Profit A- 13760 B- 3440	17200
Total	87400	Total	87400