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Page No 1.65:

Question 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)        
         

Page No 1.65:

Question 2:

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)        
         

Page No 1.65:

Question 3:

  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)        
         

Page No 1.65:

Question 4:

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

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:

Question 5:

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

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:

Question 6:

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
       

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:

Question 7:

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

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:

Question 8:

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

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:

Question 9:

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

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:

Question 10:

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¯

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:

Question 11:

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
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:

Question 12:

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)

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:

Question 13:

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
       



Page No 1.68:

Question 14:

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
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:

Question 15:

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%)
 

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:

Question 16:

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

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:

Question 17:

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

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:

Question 18:

 

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:

 

 

 

Om Fashions’ A/c

92,250

 

 

 

Profit & Loss A/c

92,250

1,84,500

 

 

 

4,90,000

 

4,90,000

 

 

 

 

             

 

Dr.

Om Fashions Account

Cr.

Particulars

Amount (Rs)

Particulars

Amount (Rs)

Joint Venture A/c-

            Sale Proceeds

4,90,000

Joint Venture A/c- Expenses

500

 

 

Bills Receivable A/c

1,00,000

 

 

Joint Venture A/c- Profit

92,250

 

 

Bank A/c (Final Payment)

2,97,250

 

4,90,000

 

4,90,000

 

 

 

 

           

 

 

In the Books of Om Fashions

Dr.

Hari Clothes Account

Cr.

Particulars

Amount (Rs)

Particulars

Amount (Rs)

Bills Payable A/c

1,00,000

Joint Venture A/c –Purchases

3,00,000

Bank A/c (Final Payment)

2,97,250

Joint Venture A/c -Expenses

5,000

 

 

Joint Venture A/c -Profit

92,250

 

3,97,250

 

3,97,250

 

 

 

 

           

 

Page No 1.69:

Question 19:

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

 

 

 

 

             

 

Dr.

Om Fashions Account

Cr.

Particulars

Amount (Rs)

Particulars

Amount (Rs)

Joint Venture A/c-

            Sale Proceeds

4,90,000

Joint Venture A/c- Expenses

500

 

 

Bills Receivable A/c

1,00,000

 

 

Joint Venture A/c- Profit

92,250

 

 

Bank A/c (Final Payment)

2,97,250

 

4,90,000

 

4,90,000

 

 

 

 

           

 

 

In the Books of Om Fashions

Dr.

Hari Clothes Account

Cr.

Particulars

Amount (Rs)

Particulars

Amount (Rs)

Bills Payable A/c

1,00,000

Joint Venture A/c –Purchases

3,00,000

Bank A/c (Final Payment)

2,97,250

Joint Venture A/c -Expenses

5,000

 

 

Joint Venture A/c -Profit

92,250

 

3,97,250

 

3,97,250

 

 

 

 

           

 

Answer:

Joint Venture  Account
Dr.   Cr.
Date Particulars Amount Rs Date Particulars Amount Rs
2014     2014    
Jan. 01 Joint Bank A/c (Purchases of Cycles) 44,200 Mar. 31 Joint Bank A/c (Sales) 55,500
Jan. 01 Joint Bank A/c (Freight and Insurance) 5,800 Mar. 31 Y (Stock) 2,500
Mar. 31 Profit transferred to:        
 
X (3/5)
4,800        
 
Y (2/5)
3,200 8,000      
    58,000     58,000
           
 
Co-Venturers’  Account
Dr.     Cr.
Date Particulars X Y Date Particulars X Y
2014       2014      
Mar. 31 Joint Venture A/c (Stock taken)   2,500 Jan. 01 Joint Bank A/c 30,000 20,000
Mar. 31 Joint Bank A/c  (Balancing figure) 34,800 20,700 Mar. 31 Joint Venture A/c (Share in Profit) 4,800 3,200
    34,800 23,200     34,800 23,200
           

 

Joint Bank  Account
Dr.   Cr.
Date Particulars Amount
Rs
Date Particulars Amount
Rs
2014     2014    
Jan. 01 X 30,000 Jan. 01 Joint Venture A/c (Purchases) 44,200
Jan. 01 Y 20,000 Jan. 01 Joint Venture A/c (Freight and Insurance) 5,800
Mar. 31 Joint Venture A/c (Sales) 55,500 Mar. 31 X (Final Payment) 34,800
      Mar. 31 Y(Final Payment) 20,700
    1,05,500     1,05,500
           
Note: As per our calculations the final payment to be made X and Y is Rs 34,800 and Rs 20,700 respectively. However, as per the answer provided in the book it is Rs 4,800 and Rs 700 respectively.

Page No 1.69:

Question 20:

Joint Venture  Account
Dr.   Cr.
Date Particulars Amount Rs Date Particulars Amount Rs
2014     2014    
Jan. 01 Joint Bank A/c (Purchases of Cycles) 44,200 Mar. 31 Joint Bank A/c (Sales) 55,500
Jan. 01 Joint Bank A/c (Freight and Insurance) 5,800 Mar. 31 Y (Stock) 2,500
Mar. 31 Profit transferred to:        
 
X (3/5)
4,800        
 
Y (2/5)
3,200 8,000      
    58,000     58,000
           
 
Co-Venturers’  Account
Dr.     Cr.
Date Particulars X Y Date Particulars X Y
2014       2014      
Mar. 31 Joint Venture A/c (Stock taken)   2,500 Jan. 01 Joint Bank A/c 30,000 20,000
Mar. 31 Joint Bank A/c  (Balancing figure) 34,800 20,700 Mar. 31 Joint Venture A/c (Share in Profit) 4,800 3,200
    34,800 23,200     34,800 23,200
           

 

Joint Bank  Account
Dr.   Cr.
Date Particulars Amount
Rs
Date Particulars Amount
Rs
2014     2014    
Jan. 01 X 30,000 Jan. 01 Joint Venture A/c (Purchases) 44,200
Jan. 01 Y 20,000 Jan. 01 Joint Venture A/c (Freight and Insurance) 5,800
Mar. 31 Joint Venture A/c (Sales) 55,500 Mar. 31 X (Final Payment) 34,800
      Mar. 31 Y(Final Payment) 20,700
    1,05,500     1,05,500
           
Note: As per our calculations the final payment to be made X and Y is Rs 34,800 and Rs 20,700 respectively. However, as per the answer provided in the book it is Rs 4,800 and Rs 700 respectively.

Answer:

Joint Venture Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Joint Bank A/c   Joint Bank A/c (5,00,000 – 50,000) 4,50,000
Purchase of Equipments
25,000   Lara (Equipment) 10,000
Hire of Equipments
30,000      
Wages
2,00,000      
Materials
75,000      
Office Expenses
25,000 3,55,000    
Brett (Licensing Fees) 10,000    
Profit transferred to:      
Brett (40%)
38,000      
Lara (60%)
57,000 95,000    
  4,60,000   4,60,000
       

 

 

Co-Venturers’ Account
Dr.   Cr.
Particulars Brett Lara Particulars Brett Lara
Joint Venture A/c (Equipment)   10,000 Joint Bank A/c 1,50,000 2,25,000
Joint Bank A/c (Balancing figure) 1,98,000 2,72,000 Joint Venture A/c (Licensing Fees) 10,000  
      Joint Venture A/c (Share in Profit) 38,000 57,000
  1,98,000 2,82,000   1,98,000 2,82,000
       
 
Joint Bank Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount Rs
Brett 1,50,000 Joint Venture A/c 3,55,000
Lara 2,25,000 Brett 1,98,000
Joint Venture A/c 4,50,000 Lara 2,72,000
  8,25,000   8,25,000
       
 
Journal
Date Particulars L.F. Debit Amount Rs Credit Amount Rs
  Joint Bank A/c Dr.   3,75,000  
 
To Brett
      1,50,000
 
To Lara
      2,25,000
  (Capital contributed by Brett and Lara)        
           
  Joint Venture A/c Dr.   3,55,000  
 
To Joint Bank A/c
      3,55,000
  (Expenses paid through bank)        
           
  Joint Venture A/c Dr.   10,000  
 
To Brett
      10,000
  (Licensing fees paid by Brett)        
           
  Joint Bank A/c Dr.   4,50,000  
 
To Joint Venture A/c
      4,50,000
  ( Contract price received)        
           
  Lara Dr.   10,000  
 
To Joint Venture A/c
      10,000
  (Goods taken over by Lara)        
           
  Joint Venture A/c Dr.   95,000  
 
To Brett
      38,000
 
To Lara
      57,000
  (Profit transferred to co-venturers)        
           
  Brett Dr.   1,98,000  
  Lara Dr.   2,72,000  
 
To Joint Bank A/c
      4,70,000
  ( Final payment made to co-venturers)        
         

Page No 1.69:

Question 21:

Joint Venture Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Joint Bank A/c   Joint Bank A/c (5,00,000 – 50,000) 4,50,000
Purchase of Equipments
25,000   Lara (Equipment) 10,000
Hire of Equipments
30,000      
Wages
2,00,000      
Materials
75,000      
Office Expenses
25,000 3,55,000    
Brett (Licensing Fees) 10,000    
Profit transferred to:      
Brett (40%)
38,000      
Lara (60%)
57,000 95,000    
  4,60,000   4,60,000
       

 

 

Co-Venturers’ Account
Dr.   Cr.
Particulars Brett Lara Particulars Brett Lara
Joint Venture A/c (Equipment)   10,000 Joint Bank A/c 1,50,000 2,25,000
Joint Bank A/c (Balancing figure) 1,98,000 2,72,000 Joint Venture A/c (Licensing Fees) 10,000  
      Joint Venture A/c (Share in Profit) 38,000 57,000
  1,98,000 2,82,000   1,98,000 2,82,000
       
 
Joint Bank Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount Rs
Brett 1,50,000 Joint Venture A/c 3,55,000
Lara 2,25,000 Brett 1,98,000
Joint Venture A/c 4,50,000 Lara 2,72,000
  8,25,000   8,25,000
       
 
Journal
Date Particulars L.F. Debit Amount Rs Credit Amount Rs
  Joint Bank A/c Dr.   3,75,000  
 
To Brett
      1,50,000
 
To Lara
      2,25,000
  (Capital contributed by Brett and Lara)        
           
  Joint Venture A/c Dr.   3,55,000  
 
To Joint Bank A/c
      3,55,000
  (Expenses paid through bank)        
           
  Joint Venture A/c Dr.   10,000  
 
To Brett
      10,000
  (Licensing fees paid by Brett)        
           
  Joint Bank A/c Dr.   4,50,000  
 
To Joint Venture A/c
      4,50,000
  ( Contract price received)        
           
  Lara Dr.   10,000  
 
To Joint Venture A/c
      10,000
  (Goods taken over by Lara)        
           
  Joint Venture A/c Dr.   95,000  
 
To Brett
      38,000
 
To Lara
      57,000
  (Profit transferred to co-venturers)        
           
  Brett Dr.   1,98,000  
  Lara Dr.   2,72,000  
 
To Joint Bank A/c
      4,70,000
  ( Final payment made to co-venturers)        
         

Answer:

Joint Venture  Account
Dr.   Cr.
Date Particulars Amount
Rs
Date Particulars Amount
Rs
2012     2012    
Feb. 15 Joint Bank A/c (Import of  Cycles) 2,50,000 Feb. 15 Joint Bank A/c (Insurance Claim) 2,500
Feb. 15 Joint Bank A/c (Freight, Insurance, Dock Charges, etc.) 39,000 Mar. 31 Joint Bank A/c ( Sale of Cycles) 3,91,000
Mar. 31 Profit transferred to:   Mar. 31 Ahmad ( Stock) 12,000
 
Ali
77,667        
 
Ahmad
38,833 1,16,500      
    4,05,500     4,05,500
           

 

Co-Venturers’  Account
Dr.   Cr.
Date Particulars Ali Ahmad Date Particulars Ali Ahmad
2012       2012      
Mar. 31 Joint Venture A/c 12,000 Jan. 01 Joint Bank A/c 2,00,000 1,00,000
Mar. 31 Joint Bank A/c  (Balancing figure) 2,77,667 1,26,833 Mar. 31 Joint Venture A/c 77,667 38,833
    2,77,667 1,38,833     2,77,667 1,38,833
           
 
Joint Bank  Account
Dr.   Cr.
Date Particulars Amount Rs Date Particulars Amount
Rs
2012     2012    
Jan. 01 Ali 2,00,000 Feb. 15 Joint Venture A/c 2,50,000
Jan. 01 Ahmad 1,00,000 Feb. 15 Joint Venture A/c 39,000
Feb. 15 Joint Venture A/c (Claim) 2,500 Mar. 31 Ali (Final Payment) 2,77,667
Mar. 31 Joint Venture A/c 3,91,000 Mar. 31 Ahmad (Final Payment) 1,26,833
    6,93,500     6,93,500
           



Page No 1.70:

Question 22:

Joint Venture  Account
Dr.   Cr.
Date Particulars Amount
Rs
Date Particulars Amount
Rs
2012     2012    
Feb. 15 Joint Bank A/c (Import of  Cycles) 2,50,000 Feb. 15 Joint Bank A/c (Insurance Claim) 2,500
Feb. 15 Joint Bank A/c (Freight, Insurance, Dock Charges, etc.) 39,000 Mar. 31 Joint Bank A/c ( Sale of Cycles) 3,91,000
Mar. 31 Profit transferred to:   Mar. 31 Ahmad ( Stock) 12,000
 
Ali
77,667        
 
Ahmad
38,833 1,16,500      
    4,05,500     4,05,500
           

 

Co-Venturers’  Account
Dr.   Cr.
Date Particulars Ali Ahmad Date Particulars Ali Ahmad
2012       2012      
Mar. 31 Joint Venture A/c 12,000 Jan. 01 Joint Bank A/c 2,00,000 1,00,000
Mar. 31 Joint Bank A/c  (Balancing figure) 2,77,667 1,26,833 Mar. 31 Joint Venture A/c 77,667 38,833
    2,77,667 1,38,833     2,77,667 1,38,833
           
 
Joint Bank  Account
Dr.   Cr.
Date Particulars Amount Rs Date Particulars Amount
Rs
2012     2012    
Jan. 01 Ali 2,00,000 Feb. 15 Joint Venture A/c 2,50,000
Jan. 01 Ahmad 1,00,000 Feb. 15 Joint Venture A/c 39,000
Feb. 15 Joint Venture A/c (Claim) 2,500 Mar. 31 Ali (Final Payment) 2,77,667
Mar. 31 Joint Venture A/c 3,91,000 Mar. 31 Ahmad (Final Payment) 1,26,833
    6,93,500     6,93,500
           

Answer:

Joint Venture  Account
Dr.   Cr.
Date Particulars Amount
Rs
Date Particulars Amount
Rs
2015     2015    
Jan. 06 Joint Bank A/c (Rent) 1,200 Jan. 28 Joint Bank A/c (Sales) 39,200
Jan. 07 Joint Bank A/c (Purchases) 72,000 Feb. 04 Joint Bank A/c (Sales) 52,000
Jan. 07 Joint Bank A/c (Freight) 1,000 Feb. 20 Joint Bank A/c (Sales) 28,000
Jan. 15 Piyush (Advertisement Expenses) 200 Feb. 24 Piyush (Goods taken) 8,000
Feb. 15 Joint Bank A/c (Purchases) 12,000      
Feb. 15 Manish (Sundry Expenses) 120      
Feb. 28 Profit transferred to:        
 
Piyush
27,120        
 
Manish
13,560 40,680      
    1,27,200     1,27,200
           
 
Co-Venturers’  Account
Dr.   Cr.
Date Particulars Piyush Manish Date Particulars Piyush Manish
2015       2015      
Feb. 24 Joint Venture A/c (Goods taken) 8,000 Jan. 01 Joint Bank A/c 72,000 36,000
Feb. 28 Joint Bank A/c  (Balancing figure) 91,320 49,680 Jan. 15 Joint Venture A/c (Advertisement Expenses) 200
        Feb. 15 Joint Venture A/c (Sundry Expenses) 120
        Feb. 28 Joint Venture A/c (Share in Profit) 27,120 13,560
    99,320 49,680     99,320 49,680
           
 
Joint Bank Account
Dr.   Cr.
Date Particulars Amount
Rs
Date Particulars Amount
Rs
2015     2015    
Jan. 01 Piyush 72,000 Jan. 06 Joint Venture A/c (Rent) 1,200
Jan. 01 Manish 36,000 Jan. 07 Joint Venture A/c (Purchases) 72,000
Jan. 28 Joint Venture A/c (Sales) 39,200 Jan. 07 Joint Venture A/c (Freight) 1,000
Feb. 04 Joint Venture A/c (Sales) 52,000 Feb. 15 Joint Venture A/c (Purchases) 12,000
Feb. 20 Joint Venture A/c (Sales) 28,000 Feb. 28 Piyush (Final Payment) 91,320
      Feb. 28 Manish (Final Payment) 49,680
    2,27,200     2,27,200
           

Page No 1.70:

Question 23:

Joint Venture  Account
Dr.   Cr.
Date Particulars Amount
Rs
Date Particulars Amount
Rs
2015     2015    
Jan. 06 Joint Bank A/c (Rent) 1,200 Jan. 28 Joint Bank A/c (Sales) 39,200
Jan. 07 Joint Bank A/c (Purchases) 72,000 Feb. 04 Joint Bank A/c (Sales) 52,000
Jan. 07 Joint Bank A/c (Freight) 1,000 Feb. 20 Joint Bank A/c (Sales) 28,000
Jan. 15 Piyush (Advertisement Expenses) 200 Feb. 24 Piyush (Goods taken) 8,000
Feb. 15 Joint Bank A/c (Purchases) 12,000      
Feb. 15 Manish (Sundry Expenses) 120      
Feb. 28 Profit transferred to:        
 
Piyush
27,120        
 
Manish
13,560 40,680      
    1,27,200     1,27,200
           
 
Co-Venturers’  Account
Dr.   Cr.
Date Particulars Piyush Manish Date Particulars Piyush Manish
2015       2015      
Feb. 24 Joint Venture A/c (Goods taken) 8,000 Jan. 01 Joint Bank A/c 72,000 36,000
Feb. 28 Joint Bank A/c  (Balancing figure) 91,320 49,680 Jan. 15 Joint Venture A/c (Advertisement Expenses) 200
        Feb. 15 Joint Venture A/c (Sundry Expenses) 120
        Feb. 28 Joint Venture A/c (Share in Profit) 27,120 13,560
    99,320 49,680     99,320 49,680
           
 
Joint Bank Account
Dr.   Cr.
Date Particulars Amount
Rs
Date Particulars Amount
Rs
2015     2015    
Jan. 01 Piyush 72,000 Jan. 06 Joint Venture A/c (Rent) 1,200
Jan. 01 Manish 36,000 Jan. 07 Joint Venture A/c (Purchases) 72,000
Jan. 28 Joint Venture A/c (Sales) 39,200 Jan. 07 Joint Venture A/c (Freight) 1,000
Feb. 04 Joint Venture A/c (Sales) 52,000 Feb. 15 Joint Venture A/c (Purchases) 12,000
Feb. 20 Joint Venture A/c (Sales) 28,000 Feb. 28 Piyush (Final Payment) 91,320
      Feb. 28 Manish (Final Payment) 49,680
    2,27,200     2,27,200
           

Answer:

Joint Venture  Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Joint Bank A/c (Purchases) (400 × 60) 24,000 Joint Bank A/c (Sales) (400 × 100 less 5%) 38,000
Sandeep (Expenses) 6,500 Joint Bank A/c (Sales) (5,000 × 5 less 10%) 22,500
Joint Bank A/c (Purchases) (5,000 × 3) 15,000    
Pradeep (Expenses) 5,500    
Sandeep (Selling Expenses) 3,000    
Pradeep (Selling Expenses) 2,000    
Profit transferred to:      
Sandeep
2,250      
Pradeep
2,250 4,500    
  60,500   60,500
       
 
Co-Venturers’  Account
Dr.   Cr.
Particulars Sandeep Pradeep Particulars Sandeep Pradeep
Joint Bank A/c  (Balancing figure) 31,750 29,750 Joint Bank A/c 20,000 20,000
      Joint Venture A/c (Expenses) 6,500 5,500
      Joint Venture A/c (Selling Expenses) 3,000 2,000
      Joint Venture A/c (Share in Profit) 2,250 2,250
  31,750 29,750   31,750 29,750
       
 
Joint Bank Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount Rs
Sandeep 20,000 Joint Venture A/c (Purchases) 24,000
Pradeep 20,000 Joint Venture A/c (Purchases) 15,000
Joint Venture A/c (Sales) 38,000 Sandeep (Final Payment) 31,750
Joint Venture A/c (Sales) 22,500 Pradeep (Final Payment) 29,750
  1,00,500   1,00,500
       

Page No 1.70:

Question 24:

Joint Venture  Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Joint Bank A/c (Purchases) (400 × 60) 24,000 Joint Bank A/c (Sales) (400 × 100 less 5%) 38,000
Sandeep (Expenses) 6,500 Joint Bank A/c (Sales) (5,000 × 5 less 10%) 22,500
Joint Bank A/c (Purchases) (5,000 × 3) 15,000    
Pradeep (Expenses) 5,500    
Sandeep (Selling Expenses) 3,000    
Pradeep (Selling Expenses) 2,000    
Profit transferred to:      
Sandeep
2,250      
Pradeep
2,250 4,500    
  60,500   60,500
       
 
Co-Venturers’  Account
Dr.   Cr.
Particulars Sandeep Pradeep Particulars Sandeep Pradeep
Joint Bank A/c  (Balancing figure) 31,750 29,750 Joint Bank A/c 20,000 20,000
      Joint Venture A/c (Expenses) 6,500 5,500
      Joint Venture A/c (Selling Expenses) 3,000 2,000
      Joint Venture A/c (Share in Profit) 2,250 2,250
  31,750 29,750   31,750 29,750
       
 
Joint Bank Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount Rs
Sandeep 20,000 Joint Venture A/c (Purchases) 24,000
Pradeep 20,000 Joint Venture A/c (Purchases) 15,000
Joint Venture A/c (Sales) 38,000 Sandeep (Final Payment) 31,750
Joint Venture A/c (Sales) 22,500 Pradeep (Final Payment) 29,750
  1,00,500   1,00,500
       

Answer:

Joint Venture  Account
Dr.
 
Cr.
Date
Particulars
Amount
Rs
Date
Particulars
Amount
Rs
2014
 
 
2014
 
 
April 01
Joint Bank A/c (Raw Film)
45,000
Sep. 30
A (Stock taken over)
10,000
April 01
A (Raw Film)
15,000
April 01
A & Co. Ltd. (Contract price)
1,20,000
April 01
Joint Bank A/c (Remuneration)
20,000
 
(1,50,000 less 20%)
 
April 01
B (Remuneration)
5,000
   
 
April 01
Joint Bank A/c (Remuneration of Technical Staff)
18,000
 
 
 
April 01
Joint Bank A/c (Other production expenses)
12,000
 
 
 
Sep. 30
Profit transferred to:
 
 
 
 
  A (5/8)
9,375
 
   
 
  B (3/8)
5,625
15,000
   
 
   
1,30,000
   
1,30,000
 
 
 
   
 

Co-Venturers’  Account
Dr.
 
Cr.
Date
Particulars
A
B
Date
Particulars
A
B
2014
 
 
 
2014
 
 
 
April 01
Joint Venture A/c
10,000
April 01
Joint Bank A/c
50,000
30,000
Sep. 30
Joint Bank A/c
(Balancing figure)
64,375
40,625
April 01
Joint Venture A/c
(Expenses)
15,000
5,000
 
 
 
 
Sep. 30
Joint Venture A/c
9,375
5,625
 
 
74,375
40,625
 
 
74,375
40,625
 
 
 
 
 
 
 
 
                   
Joint Bank  Account
Dr.
 
Cr.
Date
Particulars
Amount
Rs
Date
Particulars
Amount
Rs
2014
 
 
2014
 
 
April 01
A
50,000
April 01
Joint Venture A/c (60,000 + 25,000 + 18,000 + 12,000 – 15,000 – 5,000)
65,000
April 01
A & Co. Ltd. (Advance)
25,000
Sep. 30
A
64,375
Sep. 30
A & Co. Ltd. (Final Payment)
95,000
Sep. 30
B
40,625
   
2,00,000
 
 
2,00,000
   
 
   
 

A & Co. Ltd. Account
Dr.
 
Cr.
Date
Particulars
Amount
Rs
Date
Particulars
Amount
Rs
2014
 
 
2014
 
 
Sep. 30
Joint Venture A/c
(Balancing figure)
1,20,000
April 01
Joint Bank A/c
25,000
   
 
Sep. 30
Joint Venture A/c
(Final Payment)
95,000
   
1,20,000
   
1,20,000
   
 
   
 



Page No 1.71:

Question 25:

Joint Venture  Account
Dr.
 
Cr.
Date
Particulars
Amount
Rs
Date
Particulars
Amount
Rs
2014
 
 
2014
 
 
April 01
Joint Bank A/c (Raw Film)
45,000
Sep. 30
A (Stock taken over)
10,000
April 01
A (Raw Film)
15,000
April 01
A & Co. Ltd. (Contract price)
1,20,000
April 01
Joint Bank A/c (Remuneration)
20,000
 
(1,50,000 less 20%)
 
April 01
B (Remuneration)
5,000
   
 
April 01
Joint Bank A/c (Remuneration of Technical Staff)
18,000
 
 
 
April 01
Joint Bank A/c (Other production expenses)
12,000
 
 
 
Sep. 30
Profit transferred to:
 
 
 
 
  A (5/8)
9,375
 
   
 
  B (3/8)
5,625
15,000
   
 
   
1,30,000
   
1,30,000
 
 
 
   
 

Co-Venturers’  Account
Dr.
 
Cr.
Date
Particulars
A
B
Date
Particulars
A
B
2014
 
 
 
2014
 
 
 
April 01
Joint Venture A/c
10,000
April 01
Joint Bank A/c
50,000
30,000
Sep. 30
Joint Bank A/c
(Balancing figure)
64,375
40,625
April 01
Joint Venture A/c
(Expenses)
15,000
5,000
 
 
 
 
Sep. 30
Joint Venture A/c
9,375
5,625
 
 
74,375
40,625
 
 
74,375
40,625
 
 
 
 
 
 
 
 
                   
Joint Bank  Account
Dr.
 
Cr.
Date
Particulars
Amount
Rs
Date
Particulars
Amount
Rs
2014
 
 
2014
 
 
April 01
A
50,000
April 01
Joint Venture A/c (60,000 + 25,000 + 18,000 + 12,000 – 15,000 – 5,000)
65,000
April 01
A & Co. Ltd. (Advance)
25,000
Sep. 30
A
64,375
Sep. 30
A & Co. Ltd. (Final Payment)
95,000
Sep. 30
B
40,625
   
2,00,000
 
 
2,00,000
   
 
   
 

A & Co. Ltd. Account
Dr.
 
Cr.
Date
Particulars
Amount
Rs
Date
Particulars
Amount
Rs
2014
 
 
2014
 
 
Sep. 30
Joint Venture A/c
(Balancing figure)
1,20,000
April 01
Joint Bank A/c
25,000
   
 
Sep. 30
Joint Venture A/c
(Final Payment)
95,000
   
1,20,000
   
1,20,000
   
 
   
 

Answer:

 

 

Dr.

Joint Venture Account

Cr.

Particulars

Amount (Rs)

Particulars

Amount (Rs)

Joint Bank A/c (Wages)

3,00,000

Joint Bank A/c

 

Joint Bank A/c (Materials)

7,00,000

            -Part Contract Price

8,00,000

Parveen’s A/c (Materials)

50,000

Shares A/c

 

Mohan’s A/c (Materials)

40,000

            -Part Contract Price

2,00,000

Parveen’s A/c (Architect’s Fees)

20,000

Mohan’s A/c (Unused Stock Materials)

30,000

Shares A/c- Loss on Shares

40,000

 

 

 

 

Loss transferred to:

 

 

 

Parveen’s A/c

80,000

 

 

 

Mohan’s A/c

40,000

1,20,000

 

11,50,000

 

11,50,000

 

 

 

 

             

 

Dr.

Joint Bank Account

Cr.

Particulars

Amount (Rs)

Particulars

Amount (Rs)

Parveen’s A/c

2,50,000

Joint Venture A/c (Wages)

3,00,000

Mohan’s A/c

1,50,000

Joint Venture A/c (Materials)

7,00,000

Joint Venture A/c

8,00,000

Parveen’s A/c (Final Settlement)

2,40,000

Joint Venture A/c (Sale of shares)

1,60,000

Mohan’s A/c (Final Settlement)

1,20,000

 

13,60,000

 

13,60,000

 

 

 

 

           

 

Dr.

Capital Account

Cr.

Particulars

Parveen

Mohan

Particulars

Parveen

Mohan

Joint Venture A/c (Stock Taken Over)

 

30,000

Joint Bank A/c

2,50,000

1,50,000

Joint Venture A/c

       -Share of Loss

80,000

40,000

Joint Venture A/c (Materials)

50,000

40,000

Joint Bank A/c

2,40,000

1,20,000

Joint Venture A/c (Architect’s Fees)

20,000

 

 

3,20,000

1,90,000

 

3,20,000

1,90,000

 

 

 

 

 

 

               

 

Dr.

Shares Account

Cr.

Particulars

Amount (Rs)

Particulars

Amount (Rs)

Joint Venture A/c

2,00,000

Joint Bank A/c

1,60,000

            -Part Contract Price

 

Joint Venture A/c (Loss on sale)

40,000

 

 

 

 

 

2,00,000

 

2,00,000

 

 

 

 

           

 

Page No 1.71:

Question 26:

 

 

Dr.

Joint Venture Account

Cr.

Particulars

Amount (Rs)

Particulars

Amount (Rs)

Joint Bank A/c (Wages)

3,00,000

Joint Bank A/c

 

Joint Bank A/c (Materials)

7,00,000

            -Part Contract Price

8,00,000

Parveen’s A/c (Materials)

50,000

Shares A/c

 

Mohan’s A/c (Materials)

40,000

            -Part Contract Price

2,00,000

Parveen’s A/c (Architect’s Fees)

20,000

Mohan’s A/c (Unused Stock Materials)

30,000

Shares A/c- Loss on Shares

40,000

 

 

 

 

Loss transferred to:

 

 

 

Parveen’s A/c

80,000

 

 

 

Mohan’s A/c

40,000

1,20,000

 

11,50,000

 

11,50,000

 

 

 

 

             

 

Dr.

Joint Bank Account

Cr.

Particulars

Amount (Rs)

Particulars

Amount (Rs)

Parveen’s A/c

2,50,000

Joint Venture A/c (Wages)

3,00,000

Mohan’s A/c

1,50,000

Joint Venture A/c (Materials)

7,00,000

Joint Venture A/c

8,00,000

Parveen’s A/c (Final Settlement)

2,40,000

Joint Venture A/c (Sale of shares)

1,60,000

Mohan’s A/c (Final Settlement)

1,20,000

 

13,60,000

 

13,60,000

 

 

 

 

           

 

Dr.

Capital Account

Cr.

Particulars

Parveen

Mohan

Particulars

Parveen

Mohan

Joint Venture A/c (Stock Taken Over)

 

30,000

Joint Bank A/c

2,50,000

1,50,000

Joint Venture A/c

       -Share of Loss

80,000

40,000

Joint Venture A/c (Materials)

50,000

40,000

Joint Bank A/c

2,40,000

1,20,000

Joint Venture A/c (Architect’s Fees)

20,000

 

 

3,20,000

1,90,000

 

3,20,000

1,90,000

 

 

 

 

 

 

               

 

Dr.

Shares Account

Cr.

Particulars

Amount (Rs)

Particulars

Amount (Rs)

Joint Venture A/c

2,00,000

Joint Bank A/c

1,60,000

            -Part Contract Price

 

Joint Venture A/c (Loss on sale)

40,000

 

 

 

 

 

2,00,000

 

2,00,000

 

 

 

 

           

 

Answer:

 

 

Dr.

Joint Venture Account

Cr.

Particulars

Amount (Rs)

Particulars

Amount (Rs)

Joint Bank A/c (Wages)

4,95,000

Joint Bank A/c

 

Joint Bank A/c (Materials)

7,50,000

            -Part Contract Price

12,00,000

A’s A/c (Planning Cost)

20,000

Shares A/c

 

B’s A/c (Machinery)

60,000

            -Part Contract Price

3,00,000

C’s A/c (Truck)

1,50,000

A’s A/c (Unused Stock Materials)

35,000

Shares A/c- Loss on Shares

40,000

B’s A/c (Machinery taken over)

70,000

Profit transferred to:

 

C’s A/c (Truck taken over)

1,20,000

A’s A/c

70,000

 

Loss transferred to:

 

B’s A/c

70,000

 

Parveen’s A/c

80,000

 

C’s A/c

70,000

2,10,000

Mohan’s A/c

40,000

1,20,000

 

17,25,000

 

17,25,000

 

 

 

 

               

 

Dr.

Joint Bank Account

Cr.

Particulars

Amount (Rs)

Particulars

Amount (Rs)

A’s A/c

1,80,000

Joint Venture A/c (Wages)

4,95,000

B’s A/c

2,00,000

Joint Venture A/c (Materials)

7,50,000

C’s A/c

1,30,000

A’s A/c (Final Settlement)

2,35,000

Joint Venture A/c

12,00,000

B’s A/c (Final Settlement)

2,60,000

Joint Venture A/c (Sale of shares)

2,60,000

C’s A/c (Final Settlement)

2,30,000

 

19,70,000

 

19,70,000

 

 

 

 

           

 

Dr.

Capital Account

Cr.

Particulars

A

B

C

Particulars

A

B

C

Joint Venture A/c (Stock/Machine/Truck taken over)

35,000

70,000

1,20,000

Joint Bank A/c

1,80,000

2,00,000

1,30,000

Joint Bank A/c

2,35,000

2,60,000

2,30,000

Joint Venture A/c (Exp./Machinery/Truck)

20,000

60,000

1,50,000

 

 

 

 

Joint Venture A/c (Share in Profit)

70,000

70,000

70,000

 

2,70,000

3,30,000

3,50,000

 

2,70,000

3,30,000

3,50,000

 

 

 

 

 

 

 

 

                   

 

Dr.

Shares Account

Cr.

Particulars

Amount (Rs)

Particulars

Amount (Rs)

Joint Venture A/c

3,00,000

Joint Bank A/c

2,60,000

            -Part Contract Price

 

Joint Venture A/c (Loss on sale)

40,000

 

 

 

 

 

3,00,000

 

3,00,000

 

 

 

 

           

 

Page No 1.71:

Question 27:

 

 

Dr.

Joint Venture Account

Cr.

Particulars

Amount (Rs)

Particulars

Amount (Rs)

Joint Bank A/c (Wages)

4,95,000

Joint Bank A/c

 

Joint Bank A/c (Materials)

7,50,000

            -Part Contract Price

12,00,000

A’s A/c (Planning Cost)

20,000

Shares A/c

 

B’s A/c (Machinery)

60,000

            -Part Contract Price

3,00,000

C’s A/c (Truck)

1,50,000

A’s A/c (Unused Stock Materials)

35,000

Shares A/c- Loss on Shares

40,000

B’s A/c (Machinery taken over)

70,000

Profit transferred to:

 

C’s A/c (Truck taken over)

1,20,000

A’s A/c

70,000

 

Loss transferred to:

 

B’s A/c

70,000

 

Parveen’s A/c

80,000

 

C’s A/c

70,000

2,10,000

Mohan’s A/c

40,000

1,20,000

 

17,25,000

 

17,25,000

 

 

 

 

               

 

Dr.

Joint Bank Account

Cr.

Particulars

Amount (Rs)

Particulars

Amount (Rs)

A’s A/c

1,80,000

Joint Venture A/c (Wages)

4,95,000

B’s A/c

2,00,000

Joint Venture A/c (Materials)

7,50,000

C’s A/c

1,30,000

A’s A/c (Final Settlement)

2,35,000

Joint Venture A/c

12,00,000

B’s A/c (Final Settlement)

2,60,000

Joint Venture A/c (Sale of shares)

2,60,000

C’s A/c (Final Settlement)

2,30,000

 

19,70,000

 

19,70,000

 

 

 

 

           

 

Dr.

Capital Account

Cr.

Particulars

A

B

C

Particulars

A

B

C

Joint Venture A/c (Stock/Machine/Truck taken over)

35,000

70,000

1,20,000

Joint Bank A/c

1,80,000

2,00,000

1,30,000

Joint Bank A/c

2,35,000

2,60,000

2,30,000

Joint Venture A/c (Exp./Machinery/Truck)

20,000

60,000

1,50,000

 

 

 

 

Joint Venture A/c (Share in Profit)

70,000

70,000

70,000

 

2,70,000

3,30,000

3,50,000

 

2,70,000

3,30,000

3,50,000

 

 

 

 

 

 

 

 

                   

 

Dr.

Shares Account

Cr.

Particulars

Amount (Rs)

Particulars

Amount (Rs)

Joint Venture A/c

3,00,000

Joint Bank A/c

2,60,000

            -Part Contract Price

 

Joint Venture A/c (Loss on sale)

40,000

 

 

 

 

 

3,00,000

 

3,00,000

 

 

 

 

           

 

Answer:

 

 

Dr.

Joint Venture Account

Cr.

Particulars

Amount (Rs)

Particulars

Amount (Rs)

Joint Bank A/c (Wages)

14,64,400

Joint Bank A/c

 

Joint Bank A/c (Materials)

24,53,600

            -Part Contract Price

45,00,000

Das’s A/c (Architect’s Fees)

64,000

14% Debentures A/c

 

Bose’s A/c (Mixer)

1,60,000

            -Part Contract Price

5,00,000

Gupta’s A/c (Motor Lorry)

1,50,000

Gupta’s A/c (Lorry’s taken over)

80,000

Joint Bank A/c (Expenses)

40,000

Joint Bank A/c

1,20,000

Joint Bank A/c (Plant)

1,20,000

(Mixer + Plant)

 

14% Debentures A/c- Loss on Debentures

40,000

 

 

Profit transferred to:

 

 

 

Das’s A/c

2,36,000

 

 

 

Bose’s A/c

2,36,000

 

 

 

Gupta’s A/c

2,36,000

7,08,000

 

 

 

52,00,000

 

52,00,000

 

 

 

 

             

 

Dr.

Joint Bank Account

Cr.

Particulars

Amount (Rs)

Particulars

Amount (Rs)

Das’s A/c

6,00,000

Joint Venture A/c (Wages)

14,64,400

Bose’s A/c

7,50,000

Joint Venture A/c (Materials)

24,53,600

Gupta’s A/c

4,00,000

Joint Venture A/c (Expense)

40,000

Joint Venture A/c

45,00,000

Joint Venture A/c (Plant)

1,20,000

Joint Venture A/c

1,20,000

Das’s A/c (Final Settlement)

4,40,000

 

 

Bose’s A/c (Final Settlement)

11,46,000

 

 

Gupta’s A/c (Final Settlement)

7,06,000

 

63,70,000

 

63,70,000

 

 

 

 

           

 

Dr.

Capital Account

Cr.

Particulars

Das

Bose

Gupta

Particulars

Das

Bose

Gupta

Joint Venture A/c (Lorry taken over)

 

 

80,000

Joint Bank A/c

6,00,000

7,50,000

4,00,000

14% Debentures A/c- Taken over

4,60,000

 

 

Joint Venture A/c (Exp./Mixer/Lorry)

64,000

1,60,000

1,50,000

Joint Bank A/c

4,40,000

11,46,000

7,06,000

Joint Venture A/c (Share in Profit)

2,36,000

2,36,000

2,36,000

 

9,00,000

11,46,000

7,86,000

 

9,00,000

11,46,000

7,86,000

 

 

 

 

 

 

 

 

                   

 

Dr.

14% Debentures Account

Cr.

Particulars

Amount (Rs)

Particulars

Amount (Rs)

Joint Venture A/c

5,00,000

Das’ s A/c

4,60,000

            -Part Contract Price

 

Joint Venture A/c (Loss on Deb.)

40,000

 

 

 

 

 

5,00,000

 

5,00,000

 

 

 

 

           

 

 

Page No 1.71:

Question 28:

 

 

Dr.

Joint Venture Account

Cr.

Particulars

Amount (Rs)

Particulars

Amount (Rs)

Joint Bank A/c (Wages)

14,64,400

Joint Bank A/c

 

Joint Bank A/c (Materials)

24,53,600

            -Part Contract Price

45,00,000

Das’s A/c (Architect’s Fees)

64,000

14% Debentures A/c

 

Bose’s A/c (Mixer)

1,60,000

            -Part Contract Price

5,00,000

Gupta’s A/c (Motor Lorry)

1,50,000

Gupta’s A/c (Lorry’s taken over)

80,000

Joint Bank A/c (Expenses)

40,000

Joint Bank A/c

1,20,000

Joint Bank A/c (Plant)

1,20,000

(Mixer + Plant)

 

14% Debentures A/c- Loss on Debentures

40,000

 

 

Profit transferred to:

 

 

 

Das’s A/c

2,36,000

 

 

 

Bose’s A/c

2,36,000

 

 

 

Gupta’s A/c

2,36,000

7,08,000

 

 

 

52,00,000

 

52,00,000

 

 

 

 

             

 

Dr.

Joint Bank Account

Cr.

Particulars

Amount (Rs)

Particulars

Amount (Rs)

Das’s A/c

6,00,000

Joint Venture A/c (Wages)

14,64,400

Bose’s A/c

7,50,000

Joint Venture A/c (Materials)

24,53,600

Gupta’s A/c

4,00,000

Joint Venture A/c (Expense)

40,000

Joint Venture A/c

45,00,000

Joint Venture A/c (Plant)

1,20,000

Joint Venture A/c

1,20,000

Das’s A/c (Final Settlement)

4,40,000

 

 

Bose’s A/c (Final Settlement)

11,46,000

 

 

Gupta’s A/c (Final Settlement)

7,06,000

 

63,70,000

 

63,70,000

 

 

 

 

           

 

Dr.

Capital Account

Cr.

Particulars

Das

Bose

Gupta

Particulars

Das

Bose

Gupta

Joint Venture A/c (Lorry taken over)

 

 

80,000

Joint Bank A/c

6,00,000

7,50,000

4,00,000

14% Debentures A/c- Taken over

4,60,000

 

 

Joint Venture A/c (Exp./Mixer/Lorry)

64,000

1,60,000

1,50,000

Joint Bank A/c

4,40,000

11,46,000

7,06,000

Joint Venture A/c (Share in Profit)

2,36,000

2,36,000

2,36,000

 

9,00,000

11,46,000

7,86,000

 

9,00,000

11,46,000

7,86,000

 

 

 

 

 

 

 

 

                   

 

Dr.

14% Debentures Account

Cr.

Particulars

Amount (Rs)

Particulars

Amount (Rs)

Joint Venture A/c

5,00,000

Das’ s A/c

4,60,000

            -Part Contract Price

 

Joint Venture A/c (Loss on Deb.)

40,000

 

 

 

 

 

5,00,000

 

5,00,000

 

 

 

 

           

 

 

Answer:

Joint Venture  Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Joint Bank A/c (Timber)
37,50,000
Joint Bank A/c (Insurance Claim)
67,500
Joint Bank A/c (Freight)
37,500
Joint Bank A/c (Sales)
45,00,000
Joint Bank A/c (Insurance)
25,000
X (Timber taken)
1,41,389
Joint Bank A/c (Unloading Charges)
5,000
Y (Timber taken)
1,41,389
Profit transferred to:      
  X
5,16,389
     
  Y
5,16,389
10,32,778
   
 
48,50,278
 
48,50,278
       
       
Co-Venturers’  Account
Dr.  
Cr.
Particulars
X
Y
Particulars
X
Y
Joint Venture A/c
(Stock taken over)
1,41,389
1,41,389
Joint Bank A/c
20,00,000
20,00,000
Joint Bank A/c
(Balancing figure)
23,75,000
23,75,000
Joint Venture A/c
(Share in Profit)
5,16,389
5,16,389
 
25,16,389
25,16,389
 
25,16,389
25,16,389
           
 
Joint Bank  Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
X
20,00,000
Joint Venture A/c
(Purchases and Expenses)
38,17,500
Y
20,00,000
X (Final Payment)
23,75,000
Joint Venture A/c
67,500
Y(Final Payment)
23,75,000
Joint Venture A/c
45,00,000
   
 
85,67,500
 
85,67,500
       

Working Note:

WN 1: Calculation of Unsold Stock

 Unsold Timber =(6,000 - 500- 4,500- 600 ) = 400 cubic feet  Value of Stock =Total Cost of Goods Purchased × Unsold GoodsNet Quantity (Total Quantity - Normal Loss )=(37,50,000 + 37,500 + 25,000 + 5,000   )× 4006,000 - 600   = Rs 2,82,778 (To be shared by X and Y equally)



Page No 1.72:

Question 29:

Joint Venture  Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Joint Bank A/c (Timber)
37,50,000
Joint Bank A/c (Insurance Claim)
67,500
Joint Bank A/c (Freight)
37,500
Joint Bank A/c (Sales)
45,00,000
Joint Bank A/c (Insurance)
25,000
X (Timber taken)
1,41,389
Joint Bank A/c (Unloading Charges)
5,000
Y (Timber taken)
1,41,389
Profit transferred to:      
  X
5,16,389
     
  Y
5,16,389
10,32,778
   
 
48,50,278
 
48,50,278
       
       
Co-Venturers’  Account
Dr.  
Cr.
Particulars
X
Y
Particulars
X
Y
Joint Venture A/c
(Stock taken over)
1,41,389
1,41,389
Joint Bank A/c
20,00,000
20,00,000
Joint Bank A/c
(Balancing figure)
23,75,000
23,75,000
Joint Venture A/c
(Share in Profit)
5,16,389
5,16,389
 
25,16,389
25,16,389
 
25,16,389
25,16,389
           
 
Joint Bank  Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
X
20,00,000
Joint Venture A/c
(Purchases and Expenses)
38,17,500
Y
20,00,000
X (Final Payment)
23,75,000
Joint Venture A/c
67,500
Y(Final Payment)
23,75,000
Joint Venture A/c
45,00,000
   
 
85,67,500
 
85,67,500
       

Working Note:

WN 1: Calculation of Unsold Stock

 Unsold Timber =(6,000 - 500- 4,500- 600 ) = 400 cubic feet  Value of Stock =Total Cost of Goods Purchased × Unsold GoodsNet Quantity (Total Quantity - Normal Loss )=(37,50,000 + 37,500 + 25,000 + 5,000   )× 4006,000 - 600   = Rs 2,82,778 (To be shared by X and Y equally)

Answer:

Joint Venture  Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Joint Bank A/c (8,000 × 20)
1,60,000
Joint Bank A/c (7,500 × 25)
1,87,500
A (Transportation Charges)
2,000
B (Stock taken)
8,970
B (Insurance)
500
Joint Bank A/c (Claim @ 75%)
1,200
B (Unloading Charges)
200
   
B (Godown Rent)
700
   
B (Selling Expenses)
600
   
Profit transferred to:      
   A
16,835
     
   B
16,835
33,670
   
 
1,97,670
 
1,97,670
       
 
Co-Venturers’  Account
Dr.  
Cr.
Particulars
A
B
Particulars
A
B
Joint Venture A/c
8,970
Joint Bank A/c
1,20,000
80,000
Joint Bank A/c
(Balancing figure)
1,38,835
89,865
Joint Venture A/c (Expenses)
2,000
2,000
      Joint Venture A/c (Profit)
16,835
16,835
 
1,38,835
98,835
 
1,38,835
98,835
       
 
Joint Bank  Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
A
1,20,000
Joint Venture A/c
1,60,000
B
80,000
A (Final Payment)
1,38,835
Joint Venture A/c (Claim)
1,200
B (Final Payment)
89,865
Joint Venture A/c
1,87,500
   
 
3,88,700
 
3,88,700
       
Working Note:

WN 1: Calculation of Unsold Stock

 Unsold Stock =(8,000 - 80- 7,500- 20 ) = 400 KgValue of Stock=Total Cost of Goods × Unsold GoodsNet Quantity (After Normal Loss)=1,62,700× 4008,000 - 20   = Rs 8,155 
Value of Stock Taken over by B = 8,155 +  8,155×10100 = Rs 8,970 (approx.)

WN 2: Calculation of Insurance Claim

 Cost of 80 Kg of Tea   = 80 × 20 = Rs1,600  Insurance Claim = 75% of Rs 1,600 = Rs 1,200 

Page No 1.72:

Question 30:

Joint Venture  Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Joint Bank A/c (8,000 × 20)
1,60,000
Joint Bank A/c (7,500 × 25)
1,87,500
A (Transportation Charges)
2,000
B (Stock taken)
8,970
B (Insurance)
500
Joint Bank A/c (Claim @ 75%)
1,200
B (Unloading Charges)
200
   
B (Godown Rent)
700
   
B (Selling Expenses)
600
   
Profit transferred to:      
   A
16,835
     
   B
16,835
33,670
   
 
1,97,670
 
1,97,670
       
 
Co-Venturers’  Account
Dr.  
Cr.
Particulars
A
B
Particulars
A
B
Joint Venture A/c
8,970
Joint Bank A/c
1,20,000
80,000
Joint Bank A/c
(Balancing figure)
1,38,835
89,865
Joint Venture A/c (Expenses)
2,000
2,000
      Joint Venture A/c (Profit)
16,835
16,835
 
1,38,835
98,835
 
1,38,835
98,835
       
 
Joint Bank  Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
A
1,20,000
Joint Venture A/c
1,60,000
B
80,000
A (Final Payment)
1,38,835
Joint Venture A/c (Claim)
1,200
B (Final Payment)
89,865
Joint Venture A/c
1,87,500
   
 
3,88,700
 
3,88,700
       
Working Note:

WN 1: Calculation of Unsold Stock

 Unsold Stock =(8,000 - 80- 7,500- 20 ) = 400 KgValue of Stock=Total Cost of Goods × Unsold GoodsNet Quantity (After Normal Loss)=1,62,700× 4008,000 - 20   = Rs 8,155 
Value of Stock Taken over by B = 8,155 +  8,155×10100 = Rs 8,970 (approx.)

WN 2: Calculation of Insurance Claim

 Cost of 80 Kg of Tea   = 80 × 20 = Rs1,600  Insurance Claim = 75% of Rs 1,600 = Rs 1,200 

Answer:

Calculation of Abnormal Loss

Valuation of Ab Loss Total Cost of Oil (4,000 kg) = Rs 63,750(60,000+ 1,800+ 450+ 1,500 )  Net Quantity of Oil (After Normal Loss) = 3,950 kg(4,000 - 50 )      Cost of 400 Kg Oil Stolen =  63,750× 4003,950   = Rs 6,456 

Calculation of Unsold Stock

Valuation of Stock  =Total Cost of Oil × Unsold GoodsNet Quantity (Total Qty - Normal Loss)=63,750× 5504,000 -50   = Rs 8,877 

Page No 1.72:

Question 31:

Calculation of Abnormal Loss

Valuation of Ab Loss Total Cost of Oil (4,000 kg) = Rs 63,750(60,000+ 1,800+ 450+ 1,500 )  Net Quantity of Oil (After Normal Loss) = 3,950 kg(4,000 - 50 )      Cost of 400 Kg Oil Stolen =  63,750× 4003,950   = Rs 6,456 

Calculation of Unsold Stock

Valuation of Stock  =Total Cost of Oil × Unsold GoodsNet Quantity (Total Qty - Normal Loss)=63,750× 5504,000 -50   = Rs 8,877 

Answer:

Joint Venture  Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Joint Bank A/c (Materials) 2,00,000 Joint Bank A/c (Part of Contract Price) 8,00,000
Joint Bank A/c (Wages) 1,50,000 Shares A/c (Part of Contract Price) 2,00,000
Joint Bank A/c (Expenses) 1,25,000 T (Stock taken over) 1,00,000
S (Supplied Material) 1,25,000    
Shares A/c (Loss on Shares) 26,000    
Profit on Joint Venture 4,74,000    
  11,00,000   11,00,000
       
 
Shares  Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount Rs
Joint Venture A/c 2,00,000 W 1,74,000
    Joint Venture A/c (Loss on Shares) 26,000
  2,00,000   2,00,000
       

Page No 1.72:

Question 32:

Joint Venture  Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Joint Bank A/c (Materials) 2,00,000 Joint Bank A/c (Part of Contract Price) 8,00,000
Joint Bank A/c (Wages) 1,50,000 Shares A/c (Part of Contract Price) 2,00,000
Joint Bank A/c (Expenses) 1,25,000 T (Stock taken over) 1,00,000
S (Supplied Material) 1,25,000    
Shares A/c (Loss on Shares) 26,000    
Profit on Joint Venture 4,74,000    
  11,00,000   11,00,000
       
 
Shares  Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount Rs
Joint Venture A/c 2,00,000 W 1,74,000
    Joint Venture A/c (Loss on Shares) 26,000
  2,00,000   2,00,000
       

Answer:

Joint Venture  Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Joint Bank A/c (Wages) 90,000 Joint Bank A/c (Part of Contract Price) 2,40,000
Joint Bank A/c (Materials) 2,10,000 Shares A/c (Part of Contract Price) 1,10,000
Y (Supplied Materials) 27,000 Y (Stock taken over) 9,000
X (Engineer’s Fee) 6,000 Loss transferred to:  
Shares A/c (Loss on Shares) 62,000
X
24,000  
   
Y
12,000 36,000
       
  3,95,000   3,95,000
       
 
Co-Venturers’  Account
Dr.   Cr.
Particulars X Y Particulars X Y
Joint Venture A/c (Shares taken) 48,000   Joint Bank A/c 75,000 50,000
Joint Venture A/c (Stock taken)   9,000 Joint Venture A/c (Fees) 6,000  
Joint Venture A/c (Loss) 24,000 12,000 Joint Venture A/c (Materials)   27,000
Joint Bank A/c  (Balancing figure) 9,000 56,000      
  81,000 77,000   81,000 77,000
       
 
Joint Bank  Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount
Rs
X 75,000 Joint Venture A/c (Wages and Materials) 3,00,000
Y 50,000 X (Final Payment) 9,000
Joint Venture A/c (Part of Contract Price) 2,40,000 Y (Final Payment) 56,000
  3,65,000   3,65,000
       
 
Shares  Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount Rs
Joint Venture A/c 1,10,000 X 48,000
    Joint Venture A/c (Loss on Shares) 62,000
  1,10,000   1,10,000
       



Page No 1.73:

Question 33:

Joint Venture  Account
Dr.   Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Joint Bank A/c (Wages) 90,000 Joint Bank A/c (Part of Contract Price) 2,40,000
Joint Bank A/c (Materials) 2,10,000 Shares A/c (Part of Contract Price) 1,10,000
Y (Supplied Materials) 27,000 Y (Stock taken over) 9,000
X (Engineer’s Fee) 6,000 Loss transferred to:  
Shares A/c (Loss on Shares) 62,000
X
24,000  
   
Y
12,000 36,000
       
  3,95,000   3,95,000
       
 
Co-Venturers’  Account
Dr.   Cr.
Particulars X Y Particulars X Y
Joint Venture A/c (Shares taken) 48,000   Joint Bank A/c 75,000 50,000
Joint Venture A/c (Stock taken)   9,000 Joint Venture A/c (Fees) 6,000  
Joint Venture A/c (Loss) 24,000 12,000 Joint Venture A/c (Materials)   27,000
Joint Bank A/c  (Balancing figure) 9,000 56,000      
  81,000 77,000   81,000 77,000
       
 
Joint Bank  Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount
Rs
X 75,000 Joint Venture A/c (Wages and Materials) 3,00,000
Y 50,000 X (Final Payment) 9,000
Joint Venture A/c (Part of Contract Price) 2,40,000 Y (Final Payment) 56,000
  3,65,000   3,65,000
       
 
Shares  Account
Dr.   Cr.
Particulars Amount Rs Particulars Amount Rs
Joint Venture A/c 1,10,000 X 48,000
    Joint Venture A/c (Loss on Shares) 62,000
  1,10,000   1,10,000
       

Answer:

Memorandum Joint Venture Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Elder:   Larch (Sales)
6,000
Goods Supplied
2,500
     
Expenses
200
2,700
   
Larch:      
Goods Supplied     
2,000
     
Expenses
150
     
Commission
300
2,450
   
Profit transferred to:      
  Elder
425
     
  Larch
425
850
   
 
6,000
 
6,000
       
 
Elder’s Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
 
Joint Venture with Larch A/c Dr.  
2,500
 
 
  To Purchases A/c      
2,500
 
(Goods supplied for joint venture)        
 
         
 
Joint Venture with Larch A/c Dr.  
200
 
 
  To Bank A/c      
200
 
(Expenses paid)        
 
         
 
Joint Venture with Larch A/c Dr.  
425
 
 
  To Profit and Loss A/c      
425
 
(Profit made on joint venture)        
 
         
 
Bank A/c Dr.  
3,125
 
 
  To Joint Venture with Larch A/c      
3,125
 
(Final payment received)        
 
       
 
Larch’s Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
 
Joint Venture with Elder A/c Dr.  
2,000
 
 
  To Purchases A/c      
2,000
 
(Goods supplied for joint venture)        
 
         
 
Joint Venture with Elder A/c Dr.  
150
 
 
  To Bank A/c      
150
 
(Expenses paid)        
 
         
 
Joint Venture with Elder A/c Dr.  
300
 
 
  To Commission A/c      
300
 
(Commission received)        
 
         
 
Bank A/c Dr.  
6,000
 
 
  To Joint Venture with Elder A/c      
6,000
 
(Goods sold)        
 
         
 
Joint Venture with Elder A/c Dr.  
425
 
 
  To Profit and Loss A/c      
425
 
(Profit made)        
 
         
 
Joint Venture with Elder A/c Dr.  
3,125
 
 
  To Bank A/c      
3,125
 
(Final payment made)        
 
       

Page No 1.73:

Question 34:

Memorandum Joint Venture Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Elder:   Larch (Sales)
6,000
Goods Supplied
2,500
     
Expenses
200
2,700
   
Larch:      
Goods Supplied     
2,000
     
Expenses
150
     
Commission
300
2,450
   
Profit transferred to:      
  Elder
425
     
  Larch
425
850
   
 
6,000
 
6,000
       
 
Elder’s Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
 
Joint Venture with Larch A/c Dr.  
2,500
 
 
  To Purchases A/c      
2,500
 
(Goods supplied for joint venture)        
 
         
 
Joint Venture with Larch A/c Dr.  
200
 
 
  To Bank A/c      
200
 
(Expenses paid)        
 
         
 
Joint Venture with Larch A/c Dr.  
425
 
 
  To Profit and Loss A/c      
425
 
(Profit made on joint venture)        
 
         
 
Bank A/c Dr.  
3,125
 
 
  To Joint Venture with Larch A/c      
3,125
 
(Final payment received)        
 
       
 
Larch’s Journal
Date
Particulars
L.F.
Debit
Amount
(Rs)
Credit
Amount
(Rs)
 
Joint Venture with Elder A/c Dr.  
2,000
 
 
  To Purchases A/c      
2,000
 
(Goods supplied for joint venture)        
 
         
 
Joint Venture with Elder A/c Dr.  
150
 
 
  To Bank A/c      
150
 
(Expenses paid)        
 
         
 
Joint Venture with Elder A/c Dr.  
300
 
 
  To Commission A/c      
300
 
(Commission received)        
 
         
 
Bank A/c Dr.  
6,000
 
 
  To Joint Venture with Elder A/c      
6,000
 
(Goods sold)        
 
         
 
Joint Venture with Elder A/c Dr.  
425
 
 
  To Profit and Loss A/c      
425
 
(Profit made)        
 
         
 
Joint Venture with Elder A/c Dr.  
3,125
 
 
  To Bank A/c      
3,125
 
(Final payment made)        
 
       

Answer:

Memorandum Joint Venture Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Ramesh:   Ramesh (Sales)
1,00,000
Purchases
45,000
     
Repairs
3,000
48,000
   
Mahesh:      
Purchases
5,000
     
Rent
1,500
     
Insurance
2,000
8,500
   
Profit transferred to:      
Ramesh
21,750
     
Mahesh
21,750
43,500
   
 
1,00,000
 
1,00,000
       
                                                            
In the books of Ramesh
Joint Venture with Mahesh Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Cash A/c (Advance)
15,000
Cash A/c (Sales)
1,00,000
Cash A/c (Purchases)
45,000
   
Cash A/c (Repairs)
3,000
   
Profit and Loss A/c (Share of Profit)
21,750
   
Cash A/c (Final settlement)
(Balancing Figure)
15,250
   
 
1,00,000
 
1,00,000
       
  
In the books of Mahesh
Joint Venture with Ramesh Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Cash A/c (Purchases)
5,000
Cash A/c (Advance)
15,000
Cash A/c (Rent)
1,500
Cash A/c (Final settlement)
(Balancing Figure)
15,250
Cash A/c (Insurance)
2,000
   
Profit and Loss A/c
(Share of Profit)
21,750
   
 
30,250
 
30,250
       

Page No 1.73:

Question 35:

Memorandum Joint Venture Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Ramesh:   Ramesh (Sales)
1,00,000
Purchases
45,000
     
Repairs
3,000
48,000
   
Mahesh:      
Purchases
5,000
     
Rent
1,500
     
Insurance
2,000
8,500
   
Profit transferred to:      
Ramesh
21,750
     
Mahesh
21,750
43,500
   
 
1,00,000
 
1,00,000
       
                                                            
In the books of Ramesh
Joint Venture with Mahesh Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Cash A/c (Advance)
15,000
Cash A/c (Sales)
1,00,000
Cash A/c (Purchases)
45,000
   
Cash A/c (Repairs)
3,000
   
Profit and Loss A/c (Share of Profit)
21,750
   
Cash A/c (Final settlement)
(Balancing Figure)
15,250
   
 
1,00,000
 
1,00,000
       
  
In the books of Mahesh
Joint Venture with Ramesh Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Cash A/c (Purchases)
5,000
Cash A/c (Advance)
15,000
Cash A/c (Rent)
1,500
Cash A/c (Final settlement)
(Balancing Figure)
15,250
Cash A/c (Insurance)
2,000
   
Profit and Loss A/c
(Share of Profit)
21,750
   
 
30,250
 
30,250
       

Answer:

Memorandum Joint Venture Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
David:   Khosla:  
Purchases
1,60,000
  Sales
2,40,000
 
Expenses incurred    
60,000
  Car
50,000
2,90,000
Transportation
5,000
2,25,000
   
Khosla:      
Insurance
1,000
     
Garage  Rent
2,000
     
Brokerage
2,000
     
Sundry Expenses
400
5,400
   
Profit transferred to:      
David
29,800
     
Khosla
29,800
59,600
   
 
2,90,000
 
2,90,000
       
                                                                
In the books of Khosla
Joint Venture with David Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Cash A/c (Remittance)
1,50,000
Cash A/c (Sales)
2,40,000
Cash A/c (Insurance)
1,000
Stock A/c (Car)
50,000
Cash A/c (Garage Rent)
2,000
   
Cash A/c (Brokerage)
2,000
   
Cash A/c (Sundry Expenses)
400
   
Profit and Loss A/c (Share of Profit)
29,800
   
Cash A/c (Final settlement)
(Balancing Figure)
1,04,800
   
 
2,90,000
 
2,90,000
       

Page No 1.73:

Question 36:

Memorandum Joint Venture Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
David:   Khosla:  
Purchases
1,60,000
  Sales
2,40,000
 
Expenses incurred    
60,000
  Car
50,000
2,90,000
Transportation
5,000
2,25,000
   
Khosla:      
Insurance
1,000
     
Garage  Rent
2,000
     
Brokerage
2,000
     
Sundry Expenses
400
5,400
   
Profit transferred to:      
David
29,800
     
Khosla
29,800
59,600
   
 
2,90,000
 
2,90,000
       
                                                                
In the books of Khosla
Joint Venture with David Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Cash A/c (Remittance)
1,50,000
Cash A/c (Sales)
2,40,000
Cash A/c (Insurance)
1,000
Stock A/c (Car)
50,000
Cash A/c (Garage Rent)
2,000
   
Cash A/c (Brokerage)
2,000
   
Cash A/c (Sundry Expenses)
400
   
Profit and Loss A/c (Share of Profit)
29,800
   
Cash A/c (Final settlement)
(Balancing Figure)
1,04,800
   
 
2,90,000
 
2,90,000
       

Answer:

Memorandum Joint Venture Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Ram:    Mohan:  
Purchases         
1,00,000
  Sales             
2,00,000
 
Expenses
6,000
  Stock (Gifts)
2,000
2,02,000
Insurance                 
    2,000
     
Discount    (1,00,0000 × 18%  × 2/12)
3,000
1,11,000
   
Mohan:      
Cartage
3,000
     
 Rent       
5,000
     
Advertisement
5,000
13,000
   
Profit transferred to:      
  Ram
39,000
     
  Mohan
39,000
78,000
   
 
2,02,000
 
2,02,000
       
 
In the books of Ram
Joint Venture with Mohan Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Cash A/c (Purchases)
1,00,000
Bills Receivable A/c
1,00,000
Cash A/c (Expenses)
6,000
Bank A/c (Final settlement)
(Balancing Figure)
50,000
Cash A/c (Discount)
3,000
   
Cash A/c (Insurance)
2,000
   
Profit and Loss A/c (Share of Profit)
39,000
   
 
1,50,000
 
1,50,000
       



Page No 1.74:

Question 37:

Memorandum Joint Venture Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Ram:    Mohan:  
Purchases         
1,00,000
  Sales             
2,00,000
 
Expenses
6,000
  Stock (Gifts)
2,000
2,02,000
Insurance                 
    2,000
     
Discount    (1,00,0000 × 18%  × 2/12)
3,000
1,11,000
   
Mohan:      
Cartage
3,000
     
 Rent       
5,000
     
Advertisement
5,000
13,000
   
Profit transferred to:      
  Ram
39,000
     
  Mohan
39,000
78,000
   
 
2,02,000
 
2,02,000
       
 
In the books of Ram
Joint Venture with Mohan Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Cash A/c (Purchases)
1,00,000
Bills Receivable A/c
1,00,000
Cash A/c (Expenses)
6,000
Bank A/c (Final settlement)
(Balancing Figure)
50,000
Cash A/c (Discount)
3,000
   
Cash A/c (Insurance)
2,000
   
Profit and Loss A/c (Share of Profit)
39,000
   
 
1,50,000
 
1,50,000
       

Answer:

Memorandum Joint Venture Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
A:   B:  
Purchases
50,000
  Sales  
72,000
 
Interest on Capital
500
  Stock
300
72,300
Discount
260
  A (Stock)
200
Carriage
250
     
Brokerage
100
     
Miscellaneous Expenses
50
51,160
   
B:      
Commission  
300
     
Insurance 
200
     
Misc. Expenses
100
600
   
Profit transferred to:      
  A
10,370
     
  B
10,370
20,740
   
 
72,500
 
72,500
       
 
In the books of A
Joint Venture with B Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Cash A/c (Interest on Capital)
500
Bills Receivable
20,000
Cash A/c (Material)
50,000
Stock
200
Cash A/c (Discount)
260
Bank A/c (Final settlement)
(Balancing Figure)
41,330
Cash A/c (Carriage)
250
   
Cash A/c (Brokerage)
100
   
Cash A/c (Miscellaneous Expenses)
50
   
Profit and Loss A/c (Share of Profit)
10,370
   
 
61,530
 
61,530
       
 
In the books of B
Joint Venture with A Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Bills Payable
20,000
Cash A/c (Sales)
72,000
Cash A/c (Commission)
300
Stock
300
Cash A/c (Insurance)
200
   
Cash A/c (Miscellaneous Expenses)
100
   
Profit and Loss A/c (Share of Profit)
10,370
   
Bank A/c (Final settlement)
(Balancing Figure)
41,330
   
 
72,300
 
72,300
       

Page No 1.74:

Question 38:

Memorandum Joint Venture Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
A:   B:  
Purchases
50,000
  Sales  
72,000
 
Interest on Capital
500
  Stock
300
72,300
Discount
260
  A (Stock)
200
Carriage
250
     
Brokerage
100
     
Miscellaneous Expenses
50
51,160
   
B:      
Commission  
300
     
Insurance 
200
     
Misc. Expenses
100
600
   
Profit transferred to:      
  A
10,370
     
  B
10,370
20,740
   
 
72,500
 
72,500
       
 
In the books of A
Joint Venture with B Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Cash A/c (Interest on Capital)
500
Bills Receivable
20,000
Cash A/c (Material)
50,000
Stock
200
Cash A/c (Discount)
260
Bank A/c (Final settlement)
(Balancing Figure)
41,330
Cash A/c (Carriage)
250
   
Cash A/c (Brokerage)
100
   
Cash A/c (Miscellaneous Expenses)
50
   
Profit and Loss A/c (Share of Profit)
10,370
   
 
61,530
 
61,530
       
 
In the books of B
Joint Venture with A Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Bills Payable
20,000
Cash A/c (Sales)
72,000
Cash A/c (Commission)
300
Stock
300
Cash A/c (Insurance)
200
   
Cash A/c (Miscellaneous Expenses)
100
   
Profit and Loss A/c (Share of Profit)
10,370
   
Bank A/c (Final settlement)
(Balancing Figure)
41,330
   
 
72,300
 
72,300
       

Answer:

Memorandum Joint Venture Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
A:   B (Sale Proceeds)
54,000
Purchases
66,000
  C (Sale Proceeds)
48,000
Packaging and Transportation
3,000
69,000
A (Unsold Stock)
11,000
B:      
Salary (200 × 10)
2,000
     
Rent (400 × 10)
4,000
6,000
   
C: Salary (200 × 10)
2,000
   
Profit transferred to:      
  A
12,000
     
  B
12,000
     
  C
12,000
36,000
   
 
1,13,000
 
1,13,000
       
 
In the Books of A
Joint Venture with B & C Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Cash A/c  (Purchases)
66,000
Cash A/c (Received from B)
28,000
Cash A/c (Packaging Expenses)
3,000
Cash A/c (Received from C)
28,000
Profit and Loss A/c (Share of Profit)
12,000
C ash A/c (Received from B)
30,000
Balance c/d (Final settlement) (Balancing Figure)
24,000
Cash A/c (Received from C)
8,000
    Stock A/c (Return)
11,000
 
1,05,000
 
1,05,000
       
                                                         
In the Books of B
Joint Venture with A & C Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Cash A/c (Paid to A)
28,000
Cash A/c (Sales)
54,000
Cash A/c (Paid to A)
30,000
Balance c/d (Final settlement)
(Balancing Figure)
22,000
Cash A/c (Rent)
4,000
   
Cash A/c (Salary)
2,000
   
Profit and Loss A/c (Share of Profit)
12,000
   
 
76,000
 
76,000
       
 
In the Books of C
Joint Venture with A & B Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Cash A/c  (Paid to A)
28,000
Cash A/c (Sales)
48,000
Cash A/c (Paid to A)
8,000
Balance c/d (Final settlement)
(Balancing Figure)
2,000
Cash A/c (Salary)
2,000
   
Profit and Loss A/c (Share of Profit)
12,000
   
 
50,000
 
50,000
       

Page No 1.74:

Question 39:

Memorandum Joint Venture Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
A:   B (Sale Proceeds)
54,000
Purchases
66,000
  C (Sale Proceeds)
48,000
Packaging and Transportation
3,000
69,000
A (Unsold Stock)
11,000
B:      
Salary (200 × 10)
2,000
     
Rent (400 × 10)
4,000
6,000
   
C: Salary (200 × 10)
2,000
   
Profit transferred to:      
  A
12,000
     
  B
12,000
     
  C
12,000
36,000
   
 
1,13,000
 
1,13,000
       
 
In the Books of A
Joint Venture with B & C Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Cash A/c  (Purchases)
66,000
Cash A/c (Received from B)
28,000
Cash A/c (Packaging Expenses)
3,000
Cash A/c (Received from C)
28,000
Profit and Loss A/c (Share of Profit)
12,000
C ash A/c (Received from B)
30,000
Balance c/d (Final settlement) (Balancing Figure)
24,000
Cash A/c (Received from C)
8,000
    Stock A/c (Return)
11,000
 
1,05,000
 
1,05,000
       
                                                         
In the Books of B
Joint Venture with A & C Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Cash A/c (Paid to A)
28,000
Cash A/c (Sales)
54,000
Cash A/c (Paid to A)
30,000
Balance c/d (Final settlement)
(Balancing Figure)
22,000
Cash A/c (Rent)
4,000
   
Cash A/c (Salary)
2,000
   
Profit and Loss A/c (Share of Profit)
12,000
   
 
76,000
 
76,000
       
 
In the Books of C
Joint Venture with A & B Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Cash A/c  (Paid to A)
28,000
Cash A/c (Sales)
48,000
Cash A/c (Paid to A)
8,000
Balance c/d (Final settlement)
(Balancing Figure)
2,000
Cash A/c (Salary)
2,000
   
Profit and Loss A/c (Share of Profit)
12,000
   
 
50,000
 
50,000
       

Answer:

Joint Venture  Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Cash A/c (Construction of Plan)
70,000
Z (Material)
2,70,000
Cash A/c (Machinery)
8,00,000
Z (Instrument)
1,30,000
Joint Bank A/c (Instrument)
5,00,000
X (Machine)
1,50,000
X (Truck)
5,00,000
Y (Truck)
4,50,000
Joint Bank A/c (Material)
27,30,000
Y (1/5th Share)
13,20,000
Joint Bank A/c (Wages)
6,70,000
Joint Bank A/c ( 4/5th of Contract Price)
40,00,000
Profit transferred to:      
X
3,50,000
     
Y
3,50,000
     
Z
3,50,000
10,50,000
   
 
63,20,000
 
63,20,000
       
 
Co-Venturers’  Account
Dr.  
Cr.
Particulars
X
Y
Z
Particulars
X
Y
Z
Joint Venture A/c
6,00,000
13,20,000
4,00,000
Cash A/c
5,00,000
7,00,000
10,00,000
Joint Bank A/c
(Balancing figure)
7,50,000
 
9,50,000
Joint Venture A/c
3,50,000
3,50,000
3,50,000
        Joint Venture A/c
5,00,000
   
        Joint Venture A/c
(Balancing figure)
 
2,70,000
 
 
13,50,000
13,20,000
13,50,000
 
13,50,000
13,20,000
13,50,000
               
 
Joint Bank  Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
Cash A/c
13,30,000
Joint Venture A/c
5,00,000
Joint Venture A/c
40,00,000
Joint Bank A/c
34,00,000
  Y
2,70,000
  X
7,50,000
      Z
9,50,000
 
56,00,000
 
56,00,000
       
 
Cash   Account
Dr.  
Cr.
Particulars
Amount
Rs
Particulars
Amount
Rs
X
5,00,000
Joint Bank A/c
13,30,000
Y
7,00,000
Joint Venture A/c
8,70,000
Z
10,00,000
   
 
22,00,000
 
22,00,000
       



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