Double Entry Book Keeping Ts Grewal (2016) Solutions for Class 12 Commerce Accountancy Chapter 1 Joint Venture Accounts are provided here with simple step-by-step explanations. These solutions for Joint Venture Accounts are extremely popular among class 12 Commerce students for Accountancy Joint Venture Accounts Solutions come handy for quickly completing your homework and preparing for exams. All questions and answers from the Double Entry Book Keeping Ts Grewal (2016) Book of class 12 Commerce Accountancy Chapter 1 are provided here for you for free. You will also love the ad-free experience on Meritnation’s Double Entry Book Keeping Ts Grewal (2016) Solutions. All Double Entry Book Keeping Ts Grewal (2016) Solutions for class 12 Commerce Accountancy are prepared by experts and are 100% accurate.

Page No 1.65:

Answer:

Joint Venture Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Bank A/c (Purchase Price) 10,00,000 Bank A/c (Sale of interiors) 60,000
Y(Purchase Price) 10,00,000 Bank A/c ( Scrap) 76,000
Bank A/c:   Bank A/c (Sale of Land) 28,00,000
Demolishing Charges
80,000      
Sundry Charges
32,000 1,12,000    
Commission A/c 80,000    
Profit transferred to:      
Profit & Loss A/c
3,72,000      
Y
3,72,000 7,44,000    
  29,36,000   29,36,000
       
 
Y’s Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Bank A/c 13,72,000 Joint Venture A/c 10,00,000
    Joint Venture A/c (Profit & Loss) 3,72,000
  13,72,000   13,72,000
       

 

Journal (In the Books of X)
Date Particulars L.F. Debit Amount
Rs
Credit Amount
Rs
  Joint Venture A/c Dr.   20,00,000  
 
To Bank A/c
      10,00,000
 
To Y A/c
      10,00,000
  (Amount paid for purchase of land)        
           
  Bank A/c Dr.   60,000  
 
To Joint Venture A/c
      60,000
  (Sale of interior fittings, windows, etc.)        
           
  Joint Venture A/c Dr.   80,000  
 
To Bank A/c
      80,000
  (Charges paid for demolishing the house)        
           
  Bank A/c Dr.   76,000  
 
To Joint Venture A/c
      76,000
  (Amount received for sale of materials)        
           
  Joint Venture A/c Dr.   32,000  
 
To Bank A/c
      32,000
  (Paid for sundry charges)        
           
  Bank A/c Dr.   28,00,000  
 
To Joint Venture A/c
      28,00,000
  (Amount received from sale of land)        
           
  Joint Venture A/c Dr.   80,000  
 
To Commission A/c
      80,000
  (Fees charged by X for managing sale of property)      
           
  Joint Venture A/c Dr.   7,44,000  
 
To Y
      3,72,000
 
To Profit & Loss A/c
      3,72,000
  (Profit on joint venture)        
           
  Bank A/c Dr.   13,72,000  
 
To Y
      13,72,000
  (Amount received from X)        
         

 

Journal (In the Books of Y)
Date Particulars L.F. Debit Amount
Rs
Credit Amount
Rs
  Joint Venture Investment A/c Dr.   10,00,000  
 
To Bank A/c
      10,00,000
  (Amount remitted to X for joint venture)        
           
  Joint Venture Investment A/c Dr.   3,72,000  
 
To Profit and Loss A/c
      3,72,000
  (Sale of interior fittings, windows, etc.)        
           
  Bank A/c Dr.   13,72,000  
 
To Joint Venture Investment A/c
      13,72,000
  (Charges paid for demolishing the house)        
         

Page No 1.65:

Answer:

  In the Books of Arun
Joint Venture  Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount Rs
Bank A/c:     Prabhakar A/c (Sales) 20,000
Purchases (Goods)
12,000      
Freight & Insurance
800 12,800    
Bills Receivable A/c (Discount) 400    
Prabhakar:      
Dock Charges
500      
Rent
600      
Commission
1,000 2,100    
Profit transferred to:      
Profit & Loss A/c
1,880      
Prabhakar
2,820 4,700    
  20,000   20,000
       

 

Prabhakar’s Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount Rs
Joint Venture A/c  20,000 Joint Venture A/c 2,100
    Bills Receivable A/c 8,000
    Joint Venture A/c (Share in Profit) 2,820
    Bank A/c (Balancing figure) 7,080
  20,000   20,000
       

 

Journal
Date Particulars L.F. Debit Amount Rs Credit Amount Rs
1) Joint Venture A/c Dr.   12,000  
 
To Bank A/c
      12,000
  (Goods purchased by Arun)        
           
2) Joint Venture A/c Dr.   800  
 
To Bank A/c
      800
  (Freight and insurance paid)        
           
3) Bills Receivable A/c Dr.   8,000  
 
To Prabhakar
      8,000
  (Acceptance received)        
           
4) Bank A/c Dr.   7,600  
  Joint Venture A/c Dr.   400  
 
To Bills Receivable A/c
      8,000
  (Bills receivable discounted)        
           
5) Joint Venture A/c Dr.   2,100  
 
To Prabhakar
      2,100
  (Expenses paid by Prabhakar)        
           
6) Prabhakar Dr.   20,000  
 
To Joint Venture A/c
      20,000
  (Goods sold by Prabhakar)        
           
7) Joint Venture A/c Dr.   4,700  
 
To Profit & Loss A/c
      1,880
 
To Prabhakar
      2,820
  (Transferred profit on joint venture)        
           
8) Bank A/c Dr.   7,080  
 
To Prabhakar
      7,080
  (Final payment received by Prabhakar)        
         

Page No 1.65:

Answer:

In the Books of Arjun
Joint Venture  Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount Rs
Bank A/c (Cotton) 30,000 Bheema (Sale Proceeds) 80,000
Bank A/c:      
Sundry Expenses
1,575      
Freight
1,500 3,075    
Bheema:      
Cotton
20,750      
Freight & Insurance
1,200      
Dock Charges
200      
Custom Charges
500      
Sundry Expenses
500 23,150    
Profit transferred to:      
Profit & Loss A/c
11,888      
Bheema
11,887 23,775    
  80,000   80,000
       
 
Bheema’s Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount Rs
Joint Bank  A/c  (Advance) 6,000 Joint Venture A/c 23,150
Joint Venture A/c 80,000 Joint Venture A/c (Share in Profit) 11,887
    Bank A/c (Balancing figure) 50,963
  86,000   86,000
       

 

Arjun’s Journal
Date Particulars L.F. Debit
Amount
Rs
Credit
Amount
Rs
  Joint Venture A/c Dr.   30,000  
 
To Bank A/c
      30,000
  (Cotton purchased)        
           
  Joint Venture A/c Dr.   3,075  
 
To Bank A/c
      3,075
  (Expenses paid)        
           
  Joint Venture A/c Dr.   23,150  
 
To Bheema
      23,150
  (Expenses paid)        
           
  Bheema Dr.   80,000  
 
To Joint Venture A/c
      80,000
  (Sales proceeds received)        
           
  Bank A/c Dr.   6,000  
 
To Arjun
      6,000
  (Advances given by Arjun to Bheema)        
           
  Joint Venture A/c Dr.   23,775  
 
To Profit & Loss A/c
      11,888
 
To Bheema
      11,887
  (Profit on joint venture)        
           
  Bank A/c Dr.   50,963  
 
To Bheema
      50,963
  (Final payment received)        
         

Page No 1.65:

Answer:

In the Books of Indian Sarees
Joint Venture  Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount Rs
Bank A/c:     Modern Sarees (Sales: 90×1,800) 1,62,000
Purchases (100 × 1200)
1,20,000   Purchases A/c (WN) 13,400
Packing
4,000 1,24,000    
Bills Receivable A/c (Discount) 3,000    
Modern Sarees:      
Freight & Clearing Charges
10,000      
Selling Expenses
5,040      
Commission
8,100 23,140    
Profit transferred to:      
Profit & Loss A/c
15,156      
Modern Sarees
10,104 25,260    
  1,75,400   1,75,400
       
 
Modern Sarees Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount Rs
Joint Venture A/c  1,62,000 Joint Venture A/c 23,140
    Bills Receivable A/c 1,00,000
    Joint Venture A/c (Share in Profit) 10,104
    Bank A/c (Balancing figure) 28,756
  1,62,000   1,62,000
       

Working Notes: Calculation of stock taken over

Sarees left (100 - 90) = 10Cost of 10 Sarees (10×1,200)                              =12,000Add: Packing Charges (4,000×10100)                    =    400Add: Freight & Clearing Charges 10,000×10100 =  1000Total                                                                      Rs 13,400

Page No 1.65:

Answer:

In the Books of Kailash
Joint Venture Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Bank A/c:     Gopal (Sales) 63,000
Purchases (Goods)
39,000      
Freight and Insurance
2,700 41,700    
Bills Receivable A/c (Discount) 27,000×12100×312 810    
Gopal:      
Clearing Charges
1,800      
Rent
2,100      
Commission
3,780 7,680    
Profit transferred to:      
Profit & Loss A/c
7,320      
Gopal
5,490 12,810    
  63,000   63,000
       
 
Gopal’s Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Joint Venture A/c (Sales) 63,000 Joint Venture A/c 7,680
    Bills Receivable A/c 27,000
    Joint Venture A/c (Share in Profit) 5,490
    Bank A/c (Balancing figure) 22,830
  63,000   63,000
       

Page No 1.65:

Answer:

In the Books of X
Joint Venture  Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Bank A/c:     Y (Sales) 12,000
Purchases (Goods)
5,000      
Expenses
400 5,400    
Y:      
Purchases (Goods)
4,000      
Expenses
300      
Commission
600 4,900    
Profit transferred to:      
Profit & Loss A/c
1,275      
Y
425 1,700    
  12,000   12,000
       
 
Y’s Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount Rs
Joint Venture A/c  (Sales) 12,000 Joint Venture A/c 4,900
    Joint Venture A/c (Profit) 425
    Bank A/c (Balancing figure) 6,675
  12,000   12,000
       



Page No 1.66:

Answer:

In the Books of A
Joint Venture  Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount Rs
Bank A/c:     B (Sales:WN1) 64,350
Purchases (Goods)
60,000   B (Loss by Fire: WN2) 4,546
Freight
2,000 62,000 Bank A/c (Insurance Claim) 3,000
B:      
Selling Expenses
1,000      
Commission (WN3)
424 1,424    
Profit transferred to:      
Profit & Loss A/c
5,648      
B
2,824 8,472    
  71,896   71,896
       

 

 

B’s Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Joint Venture A/c  64,350 Bank A/c (Advance) 10,000
Joint Venture A/c  4,546 Joint Venture A/c 1,000
    Joint Venture A/c 424
    Joint Venture A/c (Share in Profit) 2,824
    Bank A/c (Balancing figure) 54,648
  68,896   68,896
       

Working Note:

WN 1: Calculation of Sale Price

Cost of Goods Sold       = 60,000Less: Goods damaged =  5,000Less: Loss by fire         =  5,500   Cost of Goods Sold       = 49,500¯ Add: Profit 30%          = 14,850                                    = Rs 64,350¯ 
 
WN 2: Calculation Compensation Payable by B for Loss by Fire

Cost of Goods Damaged                     = 5,500 (60,000 - 5,000 - 49,500)Add: Expenses =  2,00060,000  × 5,500 =   183                                                        = Rs 5,683¯  Amount of Compensation =  5,683 × 80% = Rs 4,546
 
WN 3: Calculation of Commission

Profit before charging commission = 8,896 (71,896 - 63,000)Commission = 8,896×5105=Rs 424

Page No 1.66:

Answer:

In the Books of Anshul
Joint Venture Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Bank A/c:     Gaurav (Sales):WN1 2,25,000
Purchases (Cotton)
2,00,000   Gaurav (Loss by Theft): WN2 20,600
Management Fees
10,000      
Freight and Insurance
5,000 2,15,000    
Gaurav:      
Cartage
1,000      
Selling Expenses
8,600      
Commission (21,000 × 5/105)
1,000 10,600    
Profit transferred to:      
Profit & Loss A/c
10,000      
Gaurav
10,000 20,000    
  2,45,600   2,45,600
       

 

Gaurav’s Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount
Rs
Joint Venture A/c 2,25,000 Joint Venture A/c 9,600
Joint Venture A/c 20,600 Joint Venture A/c 1,000
    Joint Venture A/c (Share in Profits) 10,000
    Bank A/c (Balancing figure) 2,25,000
  2,45,600   2,45,600
       

Working Note:

WN 1: Calculation of Sale Price

Cost of Goods Sold = 2,00,000Goods Sold (90%) = 1,80,000 Add: Profit 25%  =     45,000                                  Rs 2,25,000

WN 2: Calculation of Compensation Payable by Gaurav

Cost of Goods Lost (10%) = 20,000Add: Freight Expenses    =      500 (5,0002,00,000  × 20,000)Add: Cartage                  =      100 (1,0002,00,000  × 20,000)Loss                                = Rs 20,600

Page No 1.66:

Answer:

In the Books of Shipra
Joint Venture Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount Rs
Bank A/c:     Akash (Sales):WN1 1,45,600
Purchases
1,50,000   Akash (Unsold Stock) 28,000
Carriage
10,000   Bank A/c (Insurance Claim) 4,000
Insurance
800 1,60,800    
Akash:      
Commission (16,800 × 5/105) 800    
Profit transferred to:      
Profit & Loss A/c
6,400      
Akash
9,600 16,000    
  1,77,600   1,77,600
       

 

Akash’s Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Joint Venture A/c (Sales) 1,45,600 Joint Venture A/c 800
Joint Venture A/c  (Unsold Stock) 28,000 Joint Venture A/c (Share in Profit) 9,600
    Bank A/c (Balancing figure) 1,63,200
  1,73,600   1,73,600
       

Working Note:

WN 1: Calculation of Sale Price

Cost of Goods Sold       = 1,50,000Less: Goods Damaged =  20,000 Cost of Goods Sold       = 1,30,000¯Goods Sold                   = 1,04,000(80% of 1,30,000)Add: Profit @ 40%     =  41,600  Sales                           = Rs 1,45,600¯



Page No 1.67:

Answer:

In the Books of Andrew
Joint Venture  Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Bank A/c:     Roger (Sales) 3,00,000
Purchases
1,00,000   Roger (Loss by Fire) (1,00,000 + 10,000 + 5,000) × 20% 23,000
Freight and Insurance
10,000 1,10,000    
Roger:      
Carriage
5,000      
Godown Rent
10,000      
Commission
18,000 33,000    
Profit transferred to:      
Profit & Loss A/c
1,08,000      
Roger
72,000 1,80,000    
  3,23,000   3,23,000
       
 
Roger’s Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount Rs
Joint Venture A/c (Sales) 3,00,000 Joint Venture A/c 33,000
Joint Venture A/c (Loss by fire) 23,000 Joint Venture A/c (Share in Profit) 72,000
    Bank A/c (Balancing figure) 2,18,000
  3,23,000   3,23,000
       
Note- The answer provided for Roger's Account is different from one provided in the text book.

Page No 1.67:

Answer:

In the Books of X
Joint Venture  Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount Rs
Bank A/c:     Bank A/c (Insurance Claim) 7,500
Liquor
2,40,000   Y (Sales) 2,47,500
Freight and Insurance
7,500 2,47,500 Stock  A/c (Stock taken by X) 18,750
Y:   Y (Stock) 18,750
Carriage and Clearing Charges
4,650      
Godown Rent
1,800      
Salesman’s Salary
1,350      
Commission
14,850 22,650    
Profit transferred to:      
Profit & Loss A/c
14,900      
Y
7,450 22,350    
  2,92,500   2,92,500
       

 

Y Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount Rs
Joint Venture A/c  2,47,500 Joint Venture A/c (Carriage) 4,650
Joint Venture A/c (Stock) 18,750 Joint Venture A/c (Godown Rent) 1,800
    Joint Venture A/c (Salary) 1,350
    Joint Venture A/c (Cash) 14,850
    Joint Venture A/c (Share in Profit) 7,450
    Bank A/c (Balancing figure) 2,36,150
  2,66,250   2,66,250
       

Working Note:

WN 1: Valuation of Unsold Stock
Valuation of Unsold Stock =  Cost of goods purchased inc. expenditure × unsold goodsNet Quantity (After Normal Loss )                                        =  (2,40,000 + 7,500)× 7505,000 - 50   = Rs. 37,500 (Equally took over by X and Y)

Page No 1.67:

Answer:

Journal
In the Books of Vijay
Date Particulars L.F. Debit
Amount
Rs
Credit
Amount
Rs
2015        
April 01 Joint Venture A/c Dr.   5,00,000  
 
To Bank A/c
      5,00,000
  (Cotton purchased)        
           
April 05 Joint Venture A/c Dr.   32,500  
 
To Arun
      32,500
  (Expenses incurred by Arun on Joint Venture)      
           
April 30 Arun Dr.   7,50,000  
 
To Joint Venture A/c
      7,50,000
  (Sales made by Arun)        
           
April 30 Joint Venture A/c Dr.   22,500  
 
To Arun
      22,500
  (Commission due @3% on sales)      
           
April 30 Joint Venture A/c Dr.   1,95,000  
 
To Profit & Loss A/c
      1,17,000
 
To Arun
      78,000
  (Profit on joint venture)      
           
April 30 Bank A/c Dr.   78,000  
 
To Arun
      78,000
  (Amount received from Arun)      
         
 
Joint Venture Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Bank A/c:     Arun (Sales) 7,50,000
Cotton 5,00,000    
Arun:      
Freight
15,000      
Rent
5,000      
Insurance
5,000      
Sundry Charges
7,500      
Commission
22,500 55,000    
Profit transferred to:      
Profit & Loss A/c
1,17,000      
Arun
78,000 1,95,000    
  7,50,000   7,50,000
       
 
Arun’s Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Joint Venture A/c (Sales) 7,50,000 Joint Venture A/c (Expenses) 55,000
    Joint Venture A/c (Share in Profit) 78,000
    Bank A/c (Balancing figure) 6,17,000
  7,50,000   7,50,000
       
 
Journal
In the Books of Arun
Date Particulars L.F. Debit
Amount
Rs
Credit
Amount
Rs
2015        
April 01 Joint Venture A/c Dr.   5,00,000  
 
To Vijay
      5,00,000
  (Cotton purchased by Vijay)      
           
April 05 Joint Venture A/c Dr.   32,500  
 
To Bank A/c
      32,500
  (Expenses incurred)        
           
April 30 Bank A/c Dr.   7,50,000  
 
To Joint Venture A/c
      7,50,000
  (Sales made for cotton)        
           
April 30 Joint Venture A/c Dr.   22,500  
 
To Commission A/c
      22,500
  (Commission due @3% on sales)        
           
April 30 Joint Venture A/c Dr.   1,95,000  
 
To Profit & Loss A/c
      78,000
 
To Vijay
      1,17,000
  (Profit on joint venture)        
           
April 30 Vijay Dr.   78,000  
 
To Bank A/c
      78,000
  (Amount paid to Vijay)        
           
 
Joint Venture Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Vijay (Cotton) 5,00,000 Bank A/c (Sales) 7,50,000
Bank A/c:      
Freight
15,000      
Rent
5,000      
Insurance
5,000      
Sundry Charges
7,500      
Commission
22,500 55,000    
Profit transferred to:      
Vijay
1,17,000      
Profit & Loss A/c
78,000 1,95,000    
  7,50,000   7,50,000
       
 
Vijay’s Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Bank A/c (Balancing figure) 6,17,000 Joint Venture A/c 5,00,000
    Joint Venture A/c (Share in Profit) 1,17,000
  6,17,000   6,17,000
       

Page No 1.67:

Answer:

In the Books of K
Joint Venture Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Bank A/c:     D (Sales) 9,00,000
Purchases
5,00,000      
Freight
5,000 5,05,000    
Bills Receivable A/c (Discount) 10,000    
D:      
Expenses
6,000 6,000    
Profit transferred to:      
Profit & Loss A/c
1,89,500      
D
1,89,500 3,79,000    
  9,00,000   9,00,000
       

 

 

D’s Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Joint Venture A/c 9,00,000 Joint Venture A/c 6,000
    Bills Receivable A/c 4,00,000
    Joint Venture A/c (Share in Profit) 1,89,500
    Bank A/c (Balancing figure) 3,04,500
  9,00,000   9,00,000
       

 

 

In the Books of D
Joint Venture Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
K :     Bank A/c (Sales) 9,00,000
Purchases
5,00,000      
Expenses
5,000      
Discount
10,000 5,15,000    
Bank A/c:      
Expenses 6,000    
Profit transferred to:      
K
1,89,500      
Profit & Loss A/c
1,89,500 3,79,000    
  9,00,000   9,00,000
       

 

 

K’s Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Bills Receivable A/c 4,00,000 Joint Venture A/c 5,05,000
Bank A/c (Balancing figure) 3,04,500 Joint Venture A/c (Discount) 10,000
    Joint Venture A/c (Share in Profit) 1,89,500
  7,04,500   7,04,500
       



Page No 1.68:

Answer:

In the Books of X
Joint Venture  Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Cash (Cash Purchases) 6,00,000 Cash  A/c (Cash sales) 3,50,000
Commission A/c 17,500 Y (Sales) 2,40,000
Cash :   Y ( Insurance Claim) 10,000
Selling Expenses
9,600   Purchases A/c (Stock) 35,556
Warehouse Charges
6,000 15,600 Y (Stock) 24,444
Y:      
Expenses (3,200+2,000)
5,200      
Commission
12,000 17,200    
Profit transferred to:      
X
3,880      
Y
5,820 9,700    
  6,60,000   6,60,000
       

 

 

Y Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Joint Venture A/c  (Sales) 2,40,000 Bills Receivable A/c 2,00,000
Joint Venture A/c ( Stock) 24,444 Joint Venture A/c (Expenses) 5,200
Discounting Charges A/c 4,800 Joint Venture A/c (Commission) 12,000
Joint Venture A/c (Claim) 10,000 Joint Venture A/c (Share in Profit) 5,820
    Bank A/c (Balancing figure) 56,224
  2,79,244   2,79,244
       

 

                                                     

In the Books of Y
Joint Venture  Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
X (Cash Purchases) 6,00,000 X A/c (Cash sales) 3,50,000
X (Commission) 17,500 Cash A/c (Sales) 2,40,000
X:   X (Stock) 35,556
Selling Expenses
9,600   Purchases A/c (Stock) 24,444
Warehouse Charges
6,000 15,600 Joint Bank A/c (Insurance Claim) 10,000
Cash:      
Expenses (3,200 +2,000)
5,200      
Commission
12,000 17,200    
Profit transferred to:      
X
3,880      
Y
5,820 9,700    
  6,60,000   6,60,000
       

 

 

X Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Bills Payable A/c 2,00,000 Discounting Charges A/c 4,800
Joint Venture A/c (Sales) 3,50,000 Joint Venture A/c (Purchases) 6,00,000
Joint Venture A/c (Stock) 35,556 Joint Venture A/c (Commission) 17,500
Bank A/c (Balancing figure) 56,224 Joint Venture A/c (Expenses) 15,600
    Joint Venture A/c (Share of Profit) 3,880
  6,41,780   6,41,780
       

Since discount is borne by co-venturer, so it will not be recorded in joint venturer account.

Working Notes:

WN 1: Calculation of Goods taken over by Co- Venturers
Sales Made by Co-Venturers = Rs 5,90,000 (3,50,000 + 2,40,000)Cost of Goods Sold by Co-Venturer = Rs 5,31,000 (6,00,000  32,000 - 22,000  15,000)Profit = Rs 59,000 (5,90,000  5,31,000)Profit % = 59,0005,31,000 × 100 = 11.11% on Sales So value of goods taken over by X = Rs 35,556 (32,000 +11.11%)and value of goods taken over by Y = Rs 24,444 (22,000 + 11.11%)
 

Page No 1.68:

Answer:

In the Books of Amarnath
Joint Venture  Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Joint Bank A /c (150 × 1,300) 1,95,000 Dinanath (Sales) 3,00,000
Joint Bank A /c (Freight) 4,900    
Babuseth (50 × 1,250) 62,500    
Babuseth (Freight) 1,800    
Dinanath:      
Selling Expenses
2,800      
Commission
12,000 14,800    
Profit transferred to:      
Profit & Loss A/c
12,000      
Babuseth A/c
9,000 21,000    
  3,00,000   3,00,000
       
 
Babuseth Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Dinanath 1,65,200 Joint Venture A/c ( Bales) 62,500
    Joint Venture A/c (Freight) 1,800
    Joint Venture A/c (Share in Profit) 9,000
    Joint Bank A /c (Balancing figure) 91,900
  1,65,200   1,65,200
       
 
Dinanath Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount Rs
Joint Venture A/c 3,00,000 Joint Venture A/c 14,800
    Bank A/c 1,20,000
    Babu Seth (Balancing figure) 1,65,200
  3,00,000   3,00,000
       
 
In the Books of Babuseth
Joint Venture  Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount Rs
Amarnath (Bales) 1,95,000 Dinanath (Sales) 3,00,000
Amarnath (Freight) 4,900    
Bank A/c ( Bales) 62,500    
Bank A/c  (Freight) 1,800    
Dinanath:      
Selling Expenses
2,800      
Commission
12,000 14,800    
Profit transferred to:      
Amarnath
12,000      
Profit & Loss A/c
9,000 21,000    
  3,00,000   3,00,000
       
 
Amarnath Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount Rs
Dinanath 1,20,000 Joint Venture A/c ( Bales) 1,95,000
Bank A/c (Balancing figure ) 91,900 Joint Venture A/c ( Freight) 4,900
    Joint Venture A/c (Share in Profit) 12,000
  2,11,900   2,11,900
       
 
Dinanath Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount Rs
Joint Venture A/c 3,00,000 Joint Venture A/c 14,800
    Amarnath 1,20,000
    Bank A/c 1,65,200
  3,00,000   3,00,000
       

Page No 1.68:

Answer:

In the Books of Das
Joint Venture  Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount Rs
Bank A/c (Purchases) 42,500 Bank A/c (Sales) 20,000
Bills Receivable A/c (Discount) 240 Roy (Sales) 30,000
Bank A/c:   Purchases A/c (Stock taken over) 1,250
Carriage
300   Roy (Stock) 1,875
Commission
500      
Travelling Expenses
200 1,000    
Bank A/c (Warehousing and Insurance) 400    
Roy:      
Travelling Expenses
100      
Sundry Expenses
150 250    
Profit transferred to:      
Profit & Loss A/c
4,368      
Roy A/c
4,367 8,735    
  53,125   53,125
       
 
Roy Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount Rs
Joint Venture A/c (Sales) 30,000 Bills Receivable A/c 30,000
Joint Venture A/c (Stock taken over) 1,875 Joint Venture A/c (Expenses) 250
Bank A/c (Balancing figure) 2,742 Joint Venture A/c (Share in Profit) 4,367
  34,617   34,617
       
 
Roy
Joint Venture  Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount Rs
Das (Purchases) 42,500 Das (Sales) 20,000
Das (Discount) 240 Bank A/c (Sales) 30,000
Das :   Das (Stock ) 1,250
Carriage
300   Purchases A/c (Stock taken over) 1,875
Commission
500      
Travelling Exp.
200 1,000    
Das (Warehousing and Insurance) 400    
Bank A/c:      
Travelling Expenses
100      
Sundry Expenses
150 250    
Profit transferred to:      
Das A/c
4,368      
Profit & Loss A/c
4,367 8,735    
  53,125   53,125
       
 
Das  Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount Rs
Joint Venture A/c 20,000 Joint Venture A/c (Purchases) 42,500
Joint Venture A/c 1,250 Joint Venture A/c (Carriage) 300
Bills Payable A/c 30,000 Joint Venture A/c (Commission) 500
    Joint Venture A/c (Travelling Exp.) 200
    Joint Venture A/c (Warehousing and Insurance) 400
    Discounting Charges A/c 240
    Joint Venture A/c (Share in Profit) 4,368
    Bank A/c (Balancing figure ) 2,742
  51,250   51,250
       

Working Note

WN 1:  Valuation of Stock taken over

Cost of Goods          = 42,500Less: Unsold Goods =    2,500 _(1,000 + 1,500)Cost of Sales            = 40,000Gross Profit = Sales - Cost of SalesGross Profit = 50,000 - 40,000 = Rs 10,000Rate of GP on Cost = 10,00040,000×100=25%Stock taken by Das = Rs (1,000 + 25% of 1,000) = Rs 1,250Stock taken by Roy = Rs (1,500 + 25% of 1,500) = Rs 1,875

Page No 1.68:

Answer:

 

In the Books of Jumbo Electronics

Dr.

Joint Venture Account

Cr.

Particulars

Amount (Rs)

Particulars

Amount (Rs)

Bank A/c (Purchases)

20,00,000

Prabhat’s A/c- Sale Proceeds

30,00,000

Bank A/c (Expenses)

35,000

 

 

Prabhat’s A/c (Expenses)

2,500

 

 

Prabhat’s A/c (Commission)

50,000

 

 

Profit transferred to:

 

 

 

Prabhat’s A/c

4,56,250

 

 

 

Profit & Loss A/c

4,56,250

9,12,500

 

 

 

30,00,000

 

30,00,000

 

 

 

 

             

 

Dr.

Prabhat Electronics Account

Cr.

Particulars

Amount (Rs)

Particulars

Amount (Rs)

Bill Receivable A/c

 

Joint Venture A/c- Expenses

2,500

            -Discounting Charges

12,500

Bills Receivable A/c

5,00,000

Joint Venture A/c-

            Sale Proceeds

30,00,000

Joint Venture A/c- Commission

50,000

 

 

Joint Venture A/c- Profit

4,56,250

 

 

Bank A/c (Final Payment)

20,03,750

 

30,12,500

 

30,12,500

 

 

 

 

           

 



Page No 1.69:

Answer:

In the Books of Hari Clothes

Dr.

Joint Venture Account

Cr.

Particulars

Amount (Rs)

Particulars

Amount (Rs)

Bank A/c (Purchases)

3,00,000

Om Fashions’ A/c- Sale Proceeds

4,90,000

Bank A/c (Expenses)

5,000

 

 

Om Fashions’ A/c (Expenses)

500

 

 

Profit transferred to:

 

 

 

Om Fashions’ A/c

92,250

 

 

 

Profit & Loss A/c

92,250

1,84,500

 

 

 

4,90,000

 

4,90,000