M and N enter into joint venture where M supplies goods worth ₹6,000 and spend ₹100 on various expenses . M sells the entire lot for ₹7,500 meeting selling expenses amounted to ₹ 200. Profit Sharing ratio is equal. N remits M the amount due. the amount of remittance will be
a) 6,700
b) 7,300
c) 6,400
d) 6,100
Answers
Answered by
10
Answer:
6700 is the amount of remittance
Answered by
0
Answer:
The amount of remittance will be 6,600.
Step by step explanation:
Cost of goods = Rs. 6,000
Sale price of goods = Rs. 7,500
Profit on sale of goods = Sale price - Cost price = Rs. 7,500 - Rs. 6,000 = Rs. 1,500
Profit sharing ratio = 1 : 1
Profit of M = Profit of N = Total profit x 1/2 = Rs. 1,500 x 1/2 =Rs. 750
Amount to be remitted by N to M = Proceeds from sale - expenses incurred (selling expenses) - N's share of profit = Rs. 7,500 - Rs. 200 - Rs. 750= Rs. 6,600.
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