R and M entered into a venture to purchase and sell new gifts.they agreed to share the profit and losses equally.R purchased goods worth ₹100000 and spent₹10000 in sending the goods to M.He also paid ₹5000 for insurance.M spent ₹10000 as selling expenses and sold goods for ₹ 200000.remaining goods were taken over by him at ₹5000.what will be the amt to be remitted by M to R as final settlement ?
Ans is 155000
How to do it?
Purchase value... 1,00,000/-
Other Expenses... Rs. 10,000/- + 5,000/- (both paid by R) + 10,000/- (paid by M).
Total 1,25,000/-
Sale proceeds total: Rs. 2,00,000/- + 5,000/-
Gross profit... 2,05,000/- -minus -- 1,25,000/-
i.e. 80,000/-
Shared both equally i.e. Rs. 40,000/-,each.
Total sell consideration retained by M..
So, he has to pay R (purchase cost paid by R +expenses paid by R+ profits of R)
i.e. 1,00,000/- + 15,000/-+ 40,000/- ...... i.e. 1,55,000/-
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