Question

A and entered into a joint venture. They agreed to share profits and losses equally. A purchased goods worth Rs. 16000. Goods of Rs 4000 were destroyed by fire. Insurance claim of 3000 is received. B sold the rest of the goods for Rs. 20,000. A and B share profits equally A’s share of profits is :

Answer 1

keeping aside the amount of good destroy by fire, profit arise on sale of remaining good was ₹20000-12000(reaming good)= ₹8000+ ₹3000( insurance claim received)= ₹11000.

As per the question both the A and B shares profit equally so A share of profit = 11000×1/2= ₹5500