A & B enter into a joint venture for purchase and sale of type-writer. A purchased typewriter costing Rs 100000. repair & printing expenses were Rs 20000. B sold it at 20% margin on selling price. the sale valve will be
a. 125000
b. 150000
c. 100000
d. 140000
please answer
total cost of typewriter is = 100000 + 20000 = 120000
now, amt of profit is 20% of sales or 1/5 of sales
that means 1/4 of cost
hence, profit = 120000*1/4 = 30000
sales value = 120000 + 30000 = rs.150000
I also agree with Paras
But i have some doubt in question
even i had some doubt in question bcoz it ws a vry easy question..
n as per my xperience these type of questions are not asked in CPT
B- 150000 is the right answer but i dont think it deserves to be asked on CAClub...it was damn easy
Jawahar and Associates Chartered Accountants
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