Question

A & B enter into a joint venture sharing profit & losses in the ratio of 2:1. A purchased goods costing Rs 2,00,000. B sold the goods for Rs 2,50,000. A is entitled to get 2% commission on purchase and B is entitled to get 6% commission on sales. Find the profit on venture.
A

Answer 1

Answer:

Rs35,500

Cost of goods purchased by A = Rs. 2,00,000

Sale value of goods sold by B = Rs. 2,50,000

Profit on sale = Sale value - Cost price = Rs. 2,50,000 - Rs. 2,00,000 = Rs. 50,000

Commission to A = 1% on purchase = Rs. 2,00,000 x 1% = Rs. 2,000

Commison to B = 5% on sale = Rs. 2,50,000 x 5% = Rs. 12,500

Total commission payable = Rs. 2,000 + Rs. 12,500 = Rs. 14,500

Thus, Profit on venture = Total profit - Total commission payable = Rs. 50,000 - Rs 15,500 = Rs. 35,500.

Answer 2

Answer:

$\bf \red{QUESTION}$

A & B enter into a joint venture sharing profit & losses in the ratio of 2:1. A purchased goods costing Rs 2,00,000. B sold the goods for Rs 2,50,000. A is entitled to get 2% commission on purchase and B is entitled to get 6% commission on sales. Find the profit on venture.

GIVEN:

Cost of goods purchased by A = Rs. 2,00,000

Sale value of goods sold by B = Rs. 2,50,000

Commission to A = 2% on purchase = Rs. 2,00,000 x 2% = Rs. 4,000

Commison to B = 6% on sale = Rs. 2,50,000 x 6% = Rs. 15000

Total commission payable = Rs. 4,000 + Rs. 15,000 = Rs. 19,000

Profit on venture = Total profit - Total commission payable

Rs. 50,000 - Rs 15,500 = Rs. 35,500.

Rs. 2,50,000 - Rs. 2,00,000 = Rs. 50,000

Profit on venture = Total profit - Total commission payable = Rs. 50,000 - Rs 19,000= Rs. 31,000

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