Kabir of haridwar and bihari of mathura enter into a joint venture. They decided to send 500 machines to devdhar of Gujarat. Their profit sharing ratio 3 is to 2 respectively. 300 machines @ 200 per machines. He spent rupees 1500 in freight and other expenses. Bihari sent 200 machines @ rupees 250 per machine and spent rupees 1000 in freight and other expenses. Devdhar sold entire goods for rupees 140000. He deducted rupees 3000 for expense and 5% discount. He sent a cheque for rupees 80000 to Kabir and draft of balance sent to bihari.
To find the profits and the amount received by each partner, we can follow these steps:
Step 1: Calculate the total cost and revenue for Kabir and Bihari separately.
For Kabir:
- Kabir sent 300 machines at ₹200 per machine.
- So, his total cost is 300 machines × ₹200 per machine = ₹60,000.
- He also spent ₹1,500 in freight and other expenses.
- Therefore, his total cost is ₹60,000 + ₹1,500 = ₹61,500.
For Bihari:
- Bihari sent 200 machines at ₹250 per machine.
- So, his total cost is 200 machines × ₹250 per machine = ₹50,000.
- He also spent ₹1,000 in freight and other expenses.
- Therefore, his total cost is ₹50,000 + ₹1,000 = ₹51,000.
Step 2: Calculate the total revenue obtained from selling the machines.
- Devdhar sold all the machines for ₹140,000.
- He also deducted ₹3,000 for expenses and a 5% discount.
- The amount deducted for expenses and discount is 5% of ₹140,000, which is ₹140,000 × 5/100 = ₹7,000.
- Therefore, the total amount received by Devdhar is ₹140,000 - ₹3,000 - ₹7,000 = ₹130,000.
Step 3: Calculate the profits and the profit sharing ratio.
- The total cost of Kabir and Bihari is ₹61,500 + ₹51,000 = ₹112,500.
- The total revenue received is ₹130,000.
- Therefore, the total profit is ₹130,000 - ₹112,500 = ₹17,500.
- The profit sharing ratio is given as 3:2, which means the total shares are divided into 3 + 2 = 5 parts.
- Kabir's share is 3 parts out of 5, so his share is ₹17,500 × 3/5 = ₹10,500.
- Bihari's share is 2 parts out of 5, so his share is ₹17,500 × 2/5 = ₹7,000.
Step 4: Calculate the amounts received by Kabir and Bihari.
- Kabir received a cheque for ₹80,000.
- Bihari received the balance as a draft.
- The balance amount is ₹130,000 - ₹80,000 = ₹50,000.
Therefore, Kabir received ₹80,000, and Bihari received ₹50,000 as a draft.