J, K and L formed a venture. The contractual arrangement provides that J is to manage the venture and is to receive a fee of 15% of the profit af ter deduction of the fee as an expense of the venture. The net profit after the fee is be divided: J.25%; K, 40% and L, 35%. After 5 months, the joint venture is terminated. Debit Credit Joint venture 36,000 К, сарital 2,000 L, сapital 8,000 The venture has still some unsold merchandise worth 10,000. J agreed to purchase such at cost. The fee of J has not yet been taken up. How much is the total income earned by J? • 18,000 • 14,400 • 16,000 • 10,000
J, K and L formed a venture. The contractual arrangement provides that J is to manage the venture and is to receive a fee of 15% of the profit af ter deduction of the fee as an expense of the venture. The net profit after the fee is be divided: J.25%; K, 40% and L, 35%. After 5 months, the joint venture is terminated. Debit Credit Joint venture 36,000 К, сарital 2,000 L, сapital 8,000 The venture has still some unsold merchandise worth 10,000. J agreed to purchase such at cost. The fee of J has not yet been taken up. How much is the total income earned by J? • 18,000 • 14,400 • 16,000 • 10,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1.
Transcribed Image Text:J, K and L formed a venture. The contractual arrangement provides that J is to
manage the venture and is to receive a fee of 15% of the profit after deduction of
the fee as an expense of the venture. The net profit after the fee is be divided:
J.25%; K, 40% and L, 35%. After 5 months, the joint venture is terminated.
Debit
Credit
Joint venture
36,000
К, сарital
2,000
L, capital
8,000
The venture has still some unsold merchandise worth 10,000. J agreed to purchase
such at cost. The fee of J has not yet been taken up. How much is the total income
earned by J?
• 18,000
• 14,400
• 16,000
• 10,000
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