Double Entry Book Keeping Ts Grewal 2016 for Class 12 Commerce Accountancy Chapter 1

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)

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)

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)

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

$\begin{array}{l} Sarees left (100 - 90) = 10 \\ Cost of 10 Sarees (10 \times 1, 200) = 12,000 \\ A d d : Packing Charges (4, 000 \times \frac{10}{100}) = 400 \\ A d d : Freight & Clearing Charges (10, 000 \times \frac{10}{100}) = 1000 \\ Total Rs 13,400 \end{array}$

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) $(27, 000 \times \frac{12}{100} \times \frac{3}{12})$		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

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

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

$\begin{array}{l} Cost of Goods Sold = 60,000 \\ L e s s : Goods damaged = 5,000 \\ L e s s : Loss by fire = 5,500 \\ Cost of Goods Sold = \bar{49,500} \\ A d d : Profit 30% = 14,850 \\ = Rs \bar{64,350} \end{array}$

WN 2: Calculation Compensation Payable by B for Loss by Fire

$\begin{array}{l} Cost of Goods Damaged = 5,500 (60,000 - 5,000 - 49,500) \\ A d d : Expenses = \frac{2,000}{60,000} \times 5,500 = 183 \\ = Rs \bar{5,683} \\ Amount of Compensation = 5,683 \times 80% = Rs 4,546 \end{array}$

WN 3: Calculation of Commission

$\begin{array}{l} Profit before charging commission = 8,896 (71,896 - 63,000) \\ Commission = 8,896 \times \frac{5}{105} = Rs 424 \end{array}$

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

$\begin{array}{l} Cost of Goods Sold = 2,00,000 \\ Goods Sold (90%) = 1,80,000 \\ A d d : Profit 25% = \underset{}{45,000} \\ Rs 2,25,000 \end{array}$

WN 2: Calculation of Compensation Payable by Gaurav

$\begin{array}{l} Cost of Goods Lost (10%) = 20,000 \\ A d d : Freight Expenses = 500 (\frac{5,000}{2,00,000} \times 20,000) \\ A d d : Cartage = \underset{}{100} (\frac{1,000}{2,00,000} \times 20,000) \\ Loss = Rs 20,600 \end{array}$

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

$\begin{array}{l} Cost of Goods Sold = 1, 5 0,000 \\ L e s s : Goods Damaged = 20,000 \\ Cost of Goods Sold = \bar{1, 30,000} \\ Goods Sold = 1,04,000(80% of 1,30,000) \\ A d d : Profit @ 40% = 41,600 \\ Sales = Rs \bar{1,45,600} \end{array}$

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.

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
$\begin{array}{l} Valuation of Unsold Stock = \frac{Cost of goods purchased inc. expenditure × unsold goods}{Net Quantity (After Normal Loss)} \\ = \frac{(2,40,000 + 7,500) × 750}{5,000 - 50} = Rs. 37,500 (Equally took over by X and Y) \end{array}$

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

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

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

\begin{array}{l} 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 % = \frac{59, 000}{5, 31, 000} \times 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%) \end{array}

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

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

$\begin{array}{l} Cost of Goods = 42,500 \\ Less: Unsold Goods = \underline{2,500} (1,000 + 1,500) \\ Cost of Sales = 40,000 \\ Gross Profit = Sales - Cost of Sales \\ Gross Profit = 50,000 - 40,000 = Rs 10,000 \\ Rate of GP on Cost = \frac{10, 000}{40, 000} \times 100 = 25 % \\ Stock taken by Das = Rs (1,000 + 25% of 1,000) = Rs 1,250 \\ Stock taken by Roy = Rs (1,500 + 25% of 1,500) = Rs 1,875 \end{array}$

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

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:

Double Entry Book Keeping Ts Grewal 2016 for Class 12 Commerce Accountancy Chapter 1 - Joint Venture Accounts

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