Q.4. Vishwanath of Satara and Kashinath of Ratnagiri entered into Joint Venture to consign 1,000 bags of rice to Veera Traders, Nerul to be sold on their joint risk which in ratio of 3: 2 respectively.
Vishwanath sent 800 bags of rice @ `.2,000 each paying carriage `. 8,500, insurance `. 2,500 and other expenses `. 1,500. Kashinath sent 200 bags of rice @ `. 2,100 each, paying carriage `. 7,500 and other expenses `. 1,500.
Kashinath received an advance of `.60,000 from Vishwanath on account of Venture. All the bags of rice were sold by Veera Traders for `. 29,50,000 out of which they deducted 2% for expenses and 3% for their commission on total sales. Veera Traders remitted `.15,00,000 to Vishwanath by Bank draft and the balance to Kashinath by one month’s bill. Co- venturers settled their accounts.
You are required to prepare necessary ledger A/c in the books of Vishwanath. (12)
In the books of Vishwanath
Joint Venture A/c
Particulars | `. | `. | Particulars | `. | `. |
To Goods A/c | 1600000 | By Veera Traders A/c | |||
To Cash/Bank A/c | Sales | 2950000 | |||
Carriage Insurance Other Expenses | 8500 2500 1500 | 12500 | |||
To Kashinath A/c | |||||
Goods | 420000 | ||||
To Kashinath A/c | |||||
Carriage | 7,500 | ||||
Other Expenses | 1,500 | 9,000 | |||
To Veera Traders A/c | |||||
Expenses | 59,000 | ||||
Commission | 88,500 | 147500 | |||
To Profit A/c P & L A/c (3/5) Kashinath A/c (2/5) | 456600 304400 | 761000 | |||
2950000 | 2950000 |
Co-Venturer’s A/c (Kashinath A/c)
Particulars | `. | `. | Particulars | `. | `. |
To Cash/ Bank A/c To Veera Traders A/c | 60000 1302500 | By Joint Venture A/c By Joint Venture A/c By Joint Venture A/c (Profit) By Cash/ Bank A/c | 420000 9000 304400 629100 | ||
1362500 | 1362500 |
Veera Trader’s A/c (Agent A/c)
Particulars | `. | Particulars | `. |
To Joint Venture A/c | 2950000 | By Joint Venture A/c By Bank A/c By Kashinath A/c | 147500 1500000 1302500 |
2950000 | 2950000 |