m & n enter into joint venture, m supplies 6000 worth of goods and n sold lot of 7500 & exp of M 100 & N is 200 P&L sharing is equal.....amt of remittance N to m will be? pls explain with answer..........
harish ragav (student-IPCC) (407 Points)
10 November 2012m & n enter into joint venture, m supplies 6000 worth of goods and n sold lot of 7500 & exp of M 100 & N is 200 P&L sharing is equal.....amt of remittance N to m will be? pls explain with answer..........
ramcharan
(articled assistent)
(367 Points)
Replied 21 November 2012
first thing is that you have to see the business apart from the individuals,
if he is sending goods with his own money then credit m A/c and debit purchases if their normal practice is that to remmit the amount to the person who contributes the goods the see the balance in the M a/c any the excess amount brought is to be remmited including expences if any
in your query
M will get his contri bution of 6000+100(towards expenses)+600(towards his profit share)
N will get an amount of 200(towards expences)+600(profit share)
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