Question

A & B entered in a joint venture sharing profits & losses in the ratio of 4:5. A supplies goods to the value of Rs.50,000 and incurs expenses amounting to Rs. 5,400. B supplies goods to the value of Rs.14,000 and his expense amount to Rs.800. B sells goods on behalf of the joint venture and realizes Rs.92,000. B is entitled to a commission of 5% on sales. B settles his account by bank draft. What will be the profit on venture?

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

Answer 1

Answer: (A)

Rs.17,200

Joint Venture Account
Particulars	Rs	Particulars	Rs
Goods Supplied by A	50000	Sales by B	92000
Expenses incurred by A	5400
Goods Supplied by B	14000
Expenses incurred by B	800
Commission to B $5\%$	4600
Profit on Venture	17200
A-7644(4/9)
B-9555(5/9)
Total	92000	Total	92000