Ram & Mohan entered into a joint venture to purchase and sell new year gifts. They agreed to share profits and losses equally. Ram purchased goods worth Rs.1,00,000 and spent Rs.6,000 in sending the good to Mohan. He also paid Rs.2,000 for insurance. Ram drew a bill of exchange upon Mohan for Rs.1,00,000 at 2 months. He got the bill discounted @ 18% p.a. Mohan spent Rs.3,000 on cartage, Rs.5,000 as rent and Rs.5,000 on advertisement. He sold all the gifts for Rs.2,00,000 after retaining gifts worth Rs.2,000 for his personal use. Considering the given data; which of the following statement is correct?

Ram will remit Rs.48,000 to Mohan

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Mohan will remit Rs.48,000 to Ram

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Ram will remit Rs.50,000 to Mohan

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Mohan will remit Rs.50,000 to Ram

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Solution

The correct option is A Mohan will remit Rs.50,000 to Ram
Amount remitted by Mohan to Ram is :
Profit of Ram 39000 + (all expenses paid by Ram) Discount on Bill 3000 + Insurance 2000 + amount paid to 6000 =50000

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Similar questions

Q. R & M entered into a joint venture to purchase and sell new year gifts. They share the profit & losses equally. R purchased goods worth Rs

1, 00, 000

and spent Rs

10, 000

in sending the goods to M. He also paid Rs

5, 000

for insurance. M spent Rs

10, 000

as selling expenses and sold goods for Rs

2, 00, 000

. Remaining goods were taken over by him at Rs

5, 000

. What will be the amount to be remitted by M to R as final settlement?

Q. A & B entered into a joint venture to purchase and sell crackers. Profits or losses were to be shared equally. A purchased cracker worth Rs.1,00,000 and incurred the following expenses in sending it to B: Forwarding charges Rs.6,000, Insurance charges Rs.5,000 and Rental Charges Rs.4,000. The whole crackers were disposed of by B for Rs.2,20,000. B incurred advertisement expenses Rs.20,000. What will be the profit on joint venture?

Journalise the following transactions in the books of Mr. Sancheti.

2011 Oct.	1	Mr. Sancheti received Rs 50,000 from his uncle as a gift and deposited the same into the account of business Bank of India A/c.
	3	Purchased goods of Rs 15,000 from Mahesh.
	5	Sold goods on credit to Suman for Rs 18,000.
	7	Goods of Rs 600 being defective returned by Suman.
	11	Remitted cash to Mahesh Rs 14,800 and received discount Rs 200.
	15	Bought machinery from KK & Co. Rs 30,000 and half the amount paid immediately.
	17	Paid for repairs to Machinery Rs 400.
	20	Purchased a horse for Rs 4,800 and carriage charges Rs 200 paid.
	25	Withdrawn from bank Rs 5,000 for personal use.
	27	Amount due from Girish Rs 900 is proved to be irrecoverable and has to be written off as bad.
	29	Paid for sales vouchers Rs 1,100.
	31	Paid Insurance Premium Rs 6,000.

A drew a bill on B for Rs. 50,000 for 3 months. Proceeds are to be shared equally. A got the bill discounted at 12% p.a. and remits required proceeds to B. The amount of such remittance for A & B will be:

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The correct option is A Mohan will remit Rs.50,000 to RamAmount remitted by Mohan to Ram is :Profit of Ram 39000 + (all expenses paid by Ram) Discount on Bill 3000 + Insurance 2000 + amount paid to 6000 =50000

The correct option is A Mohan will remit Rs.50,000 to Ram
Amount remitted by Mohan to Ram is :
Profit of Ram 39000 + (all expenses paid by Ram) Discount on Bill 3000 + Insurance 2000 + amount paid to 6000 =50000