Question
'A' started a firm by investing Rs. 6,000. After 4 months,
'B' joined with an amount Rs. 1,000 more than 'A'. After 4 more months, 'C' joined with Rs. 8,000. At the end of 16 months, if A’s profit is Rs. 1,200, what is C’s profit share?Solution
ATQ,
Investment of 'B' = 6,000 + 1,000 = Rs. 7,000
Time for which 'B' invested = 16 - 4 = 12 months
Time for which 'C' invested = 16 - 4 - 4 = 8 months
Ratio of profit share of 'A', 'B' and 'C' respectively:
= (6,000 × 16) : (7,000 × 12) : (8,000 × 8)
= 96,000 : 84,000 : 64,000
= 12 : 10.5 : 8
= 24 : 21 : 16
Therefore, profit share of 'C' = (16 / 24) × 1,200 = Rs. 800
In which of the following industry, batch costing will be used?
Calculate the Material Price variance, if Material Cost variance is 24000 (F) and the Material Usage variance is 29750 (F).
If 8000 units are introduced in a process and normal loss is 5% of input, Closing WIP is 1000 units which is 60% complete and 6600 units are transferred...
Which of the following correctly describes the scope of cost accounting?
Which of the following is not a component of M arginal Cost of Funds based lending rate (M CLR ), used by the banks to price the loans they extend ? Â ...
Management accounting can assist the management by provision of relevant information for __________
What will be the BEP in units when the sales price is Rs.40 per unit, fixed cost is Rs.60000 and the PV ratio is 40%?
The process of accounting for cost which begins with the recording of income and expenditure or the bases on which they are calculated and ends with the...
In costing, which of the following standards are also known as the past performance standards?
The category of costing which is applicable to work carried out or products produced by specific orders as against continuous production, is known as __...
Relevant for Exams:
