Question

A & B entered in joint venture to share profits & losses in the ratio of 3:2. A supplies goods to the value of Rs.60,000 and incurs expenses amounting Rs.6,000. B supplies goods to the value of Rs.14,000 and his expenses amount to Rs.1,000. B sells goods on behalf of the joint venture and realizes Rs.1,00,000. B entitled to a commission of 5% on sales. B settles his account by bank draft. Find out the profit on venture?

• A. Rs.14,400
• B. Rs.14,000
• C. Rs.13,000
• D. Rs.13,200

Answer 1

Answer: (B)

Rs.14,000

Joint Venture Account
Particulars	Rs	Particulars	Rs
To A supplied goods	60000	By sales	100000
To As expenses	6000
To Bs supplied goods	14000
To Bs expenses	1000
To Bs commission	5000
To Profit	14000
Total	100000	Total	100000