Professional Documents
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Problem # 1
In the books of Pankaj Joint venture A/c Amount Particulars 10000 By Dinesh's A/c -Sales
Particulars To Cash/bank A/c (goods purchased) To Cash/bank A/c - Exps To Bank draft A/c - discount To Dinesh's A/c - Exps.
Amount 18000
Profit (1:1) To P & L A/c - pankaj's share - 2800 To Dinesh's A/c - Dinesh's Share -2800
5600 18000
18000
Dinesh's A/c Amount Particulars 18000 By Bank draft A/c By joint venture A/c -exp By Joint venture A/c - profit By Bank A/c 18000
Particulars To Pankaj's A/c (goods purchased) To Pankaj's A/c - Exps To Pankaj's A/c - discount To Cash/bank A/c - Exps. Profit (1:1) To Pankaj's A/c - pankaj's share -2800 To P & L A/c - Dinesh's Share 2800
In the books of Dinesh Joint venture A/c Amount Particulars 10000 By Cash/bank A/c -Sales
Amount 18000
5600 18000
18000
Pankaj's A/c Amount Particulars 8000 By Joint venture A/c (goods purchased) By Joint venture A/c - exps By joint venture A/c - disc. By joint venture A/c - profit
Amount 10000
To Bank A/c
6000 14000
Problem # 2
In the books of Hathi Joint venture A/c Amount Particulars 187500 By Cash/bank A/c -Sales By Mankad's A/c - sales To Bills receivables A/c - discount To Cash/bank A/c - Hathi's Exps Carriage - 1500 Travelling Exps. - 1625 To Mankad's A/c - Mankad's Exps Carriage - 500 Travelling Exps. - 1500 To Commission A/c - Hathi's commi. (107500 x 5%) To Mankad's A/c - Mankad's commi. (117500 x 5%) Profit (3:2) To P & L A/c - Hathi's share 24900 To Mankad's A/c - Mankad's Share - 16600 1500 By Purchases A/c (unsold units purchased) 3125 (working note # 1) 21875
41500 246875
246875
Mankad's A/c Amount Particulars 117500 By Bills receivables A/c By joint venture A/c -exp By Joint venture A/c - comm. By Joint venture A/c - profit By Bank A/c
To Bank A/c
31975 149475
In the books of Mankad Joint venture A/c Amount Particulars 187500 By Hathi's A/c -Sales By Cash/bank A/c - sales 1500 By Hathi's A/c (unsold units purchased) 3125 (working note # 1)
To Hathi's A/c - Hathi's Exps Carriage - 1500 Travelling Exps. - 1625 To Cash/bank A/c - Mankad's Exps Carriage - 500 Travelling Exps. - 1500 To Hathi's A/c - Hathi's commi. (107500 x 5%) To Commission A/c - Mankad's commi. (117500 x 5%) Profit (3:2) To Hathi's A/c - Hathi's share - 24900 To P & L A/c - Mankad's Share - 16600
21875
41500 246875
246875
Working note # 1 Cost of goods sold = goods purchased closing stock = 187500-18750 = 168750 Gross Profit = Sales cost of goods sold = 225000-187500 = 56250 Gross profit rate on cost price = 56250/168750 x 100 = 331/3% Goods taken over by Hathi at half of the gross profit rate on cost price = 33.33/2 = 16.66667% Price at which closing stock taken over by Hathi = closing stock 18750 + profit (18750 x 16.6667%) = 21875
Hathi's A/c Particulars To Joint venture A/c To Bills payables A/c To joint venture A/c (unsold units purchased) Amount Particulars 107500 By Joint venture A/c (goods purchased) 125000 By Joint venture A/c - disc. 21875 By Joint venture A/c - exps By joint venture A/c - Commi By joint venture A/c - profit By Bank A/c 254375 Amount 187500
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Problem # 3
In the books of the firm Joint venture A/c Amount Particulars By Kirit's A/c - Material took away By Nilesh's A/c - Mixture machine
took away
Particulars To Joint bank A/c - Exps. Wages - 390000 Material - 610000 Plant - 40000 To Kirit's A/c - Architect fee paid To Nilesh's A/c - Mixture machine
brought
By Rajesh's A/c - Vehicle took away 1040000 By Joint bank A/c - plant realised 30000 55000 40000 Contract Price By Joint bank A/c - bank draft received By 12% Debenture A/c - debenture 60000 recd.
900000 300000
To 12 % Debentures A/c - loss Profit (3:2:1) To Kirit's A/c To Nilesh's A/c To Rajesh's A/c -
60000 1285000
1285000
Particulars By Joint venture A/c Architect fee By Joint venture A/c Mixture machine By Joint venture A/c Vehicle
Kirit 25000
Co-venturer's A/c Nilesh Rajesh Particulars By Joint Bank A/c 20000 By Joint venture A/c 30000 Architect fee By Joint venture A/c Mixture mach By Joint venture A/c Vehicle By Joint venture A/c profit
Kirit
Nilesh
Rajesh 90000
270000 180000
By 12 % Debentures A/c
240000
30000
20000
10000 140000
330000 255000
Joint Bank A/c Particulars To Kirit's A/c To Nilesh's A/c To Rajesh's A/c To Joint venture A/c - contract price To joint venture A/c - plant realized Amount Particulars 270000 To Joint venture A/c - Exps. 180000 Wages - 390000 90000 Material - 610000 Plant - 40000 900000 By kirit's A/c 10000 By Nilesh's A/c by Rajesh's A/c 1450000 Amount
12% Debentures A/c Particulars To Joint Venture A/c Part of contract price Amount Particulars 300000 By Kirit's A/c - taken over By Joint venture A/c - loss 300000 Amount 240000 60000 300000