Question

A & B enter into a joint venture sharing profits equally. A purchased 5,000 kg of rice @ Rs 50 per kg.B purchased 1,000 kg of wheat @ Rs.60 per kg. A sold 1,000 kg of rice @ Rs 60 per kg and B sold 5,000 kg of wheat @ Rs.70 per kg. The profit on venture will be -

• A. Rs.1,10,000
• B. Rs.1,00,000
• C. Rs.1,20,000
• D. Rs.60,000

Answer 1

The correct option is B Rs.1,00,000

Joint Venture Account
Particular	Rs	Particular	Rs
To Purchased by A	250000	By Sales by A	60000
To Purchased by B	60000	By Sales by B	350000
To Venture Profit	100000
As-50000
Bs-50000
Total	410000	Total	410000