Question

Karthik and Dhoni entered into Joint venture, sharing profits & Losses in the Ratio of 2:1. Karthik purchased goods Rs.2,00,000 and entitled to 1% commission on purchases. Dhoni sold goods for Rs.2,50,000 and entitled to get a commission 5% on sales. The profit on venture will be _____ a) Rs.35,500 b) Rs.34,000 c) Rs.36,000 d) Rs.38,000

Answer 1

Answer:

35,500

Explanation:

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.