Joint venture Questions for Practise


Q 1 Kirish, Roshan and Mohan undertook the construction of a building at a contract price of Rs.25,00,000 payable by Bank Draft Rs 20,00,000 and debentures of Rs.5,00,000 They shared profits and losses in the ratio of 1/2, 1/3, 1/6 respectively. They opened a Joint Bank Account. wherein they deposited the following amounts Kirish Rs 3,00,000 Roshan Rs 5,00,000 and Mohan Rs 7,00,000 
The following payments are made out through Joint Bank Account.
 Purchase of materials Rs 8,50,000 Purchase of Plant Rs 1,45,000 Payment of Wages Rs 5,85,000 Other Charges Rs 2,20,000 Kirish brings the truck of Rs.1,00,000, Roshan brings in the material of Rs.3,50,000, Mohan brings mixer worth Rs.80,000. The unused materials were taken by Kirish for Rs.70,000. Roshan took over the mixer and plant for Rs.1,05,000. The truck was sold in the market for Rs.80,000. 
The contract price was received as per the agreement and Kirish agreed to take over the debentures at a discount of Rs 5,000. The venture was closed.
 
Show Joint Venture Account, Joint Bank Account, Co-Venturers Capital Accounts .
 

Q 2
 Mr Philip and Mr Anand entered into a joint venture to consign Pump sets to Mr Vasanth to be sold on their joint risk which is in the ratio of 2:1 respectively.
Mr Philip sent 900 pump sets at Rs 1,000 each, paying carriage Rs 18,000, Insurance Rs 12,000 and for other expenses Rs 11,000 in cash. Mr Anand sent 600 pump sets @ Rs 1,500 each, paying Rs 20,000 carriage and Rs 16,000 for other expenses. Mr .Philip advance Rs 40,000 to Mr Anand on account of Joint Venture. All the Pump sets were sold by Mr Vasanth for Rs 2,000 each, Mr Vasanth is to be allowed 2% commission on Sales & 3% for expenses. Mr. Vasanth remitted Rs. 1,00,000 to Mr. Philip and balance amount to Mr. Anand. Co-Venturers settled their accounts.
Prepare in the books of Mr Anand
 
Joint venture A/C Mr Philip's A/C and Mr Vasanth's A/C.
 

Q 3
 Miss Ambar & Miss Dhara entered into a joint venture to construct a building for M/S Unnati & Co. at a contract price of Rs 22,00,000, to be paid Rs 16,00,000 by a draft and Rs 6,00,000 by way of issue of shares. They opened a joint Bank Account,depositing Rs 4,00,000 by Miss Ambar and Rs 6,00,000 by Miss Dhara. Material supplied by Miss Ambar Rs 1,50,000 and truck brought in by Miss Dhara for
Rs 3,50,000. They purchased materials from market for Rs 11,00,000. and Wages were paid Rs 3,40,000 Contract price was received in full. Truck was sold at a loss of Rs.20,000. Unused material was taken over by Miss Ambar for Rs 15,000 and by Miss Dhara for Rs 14,000. Shares were transferred on the name of Miss Ambar at 10% premium. Joint venture was closed.
Journalise the Transactions.
 

Q 4
 Mr.Krishna of Mumbai and Miss Radha of Pune entered into a joint venture to sale the goods with the help of their agent Mr.prem of Ratlam. Mr.prem is to be allowed 3% commission on sales
and 2% for expenses.
Mr.Krishna advanced Rs 1,00,000 to Miss Radha on account of Joint Venture. Mr. Krishna supplied goods worth Rs. 7,00,000 to Mr.prem on account of Joint venture and incurred Rs.20,000 for expenses.Miss Radha supplied goods worth Rs 5,00,000 to Mr.prem and incurred Rs 10,000 on account of carriage outward. Miss Radha accepted a bill at 2 months for Rs 1,00,000 drawn by Mr.Krishna which is discounted by the holder @ 10% p.a.
All the goods were sold by Mr.prem for Rs 20,00,000. Mr.prem remitted Rs 10,00,000 to
Mr.Krishna and balance amount to Miss Radha. Joint Venture was closed accounts were settled with the help of Bank account.Prepare in the books of Mr.Krishna
 
Joint venture account,Miss Radha's A/C and Mr.prem's account
 


Q 5
 Mr Ram of Mumbai and Mr Laxman of Jamnagar entered into a joint venture to consign 3,000 T.V sets to Mr Madhav of Goa to be sold on their joint risk which is in the ratio of 3:2 respectively. Mr Ram sent 1,800 T.V. sets at Rs 2,000 each,paying carriage Rs 25,000, Insurance Rs 24,000 and for other expenses Rs 20,000. Mr Laxman sent 1,200 T.V. sets @ Rs 2,200 each, paying
Rs 25,000 carriage and Rs 11,000 for other expenses.Mr Laxman advanced Rs 2,50,000 to Mr Ram on account of Joint Venture. All the T.V. sets were sold by Mr Madhav for Rs 3,500 each ,Mr Madhav is to be allowed 2% commission on Sales & 3% for expenses. Co-Venturers settled their accounts.
 
Show Journal of Mr.Ram
 

Q 6
 Govind of Churchgate and Gopal of Bandra entered into a joint venture to purchase and sell cycles.they decided to share profit and loss equally. Govind purchased 200 cycles at Rs 800 each and paid Rs 1,200 for carriage Rs 2,500 for insurance and draws a bill for Rs 8,000 on Gopal which was duly accepted by Gopal. The bill was discounted for Rs.7,500. Gopal purchased 300 cycles at Rs 700 each and spent Rs 20 per cycle for carriage and Rs 8,000 for selling expenses. Govind sold 150 cycles at Rs 1,250 each.All the remaining cycles for venture were sold by Gopal at Rs.1,000 each.Joint Venture was completed and both the parties settled their accounts
.Show in the books of Govind., Joint Venture Account and Gopal's Account
 

Q 7
 Mr.Munna of Mehsana and Mr. pappu of Palanpur entered into a joint venture sharing profit and losses in the ratio of 4:3.Mr.Munna sent 1,200 bags of Sugar @ Rs.600 each paying for freight and other charges Rs. 27,000 and Mr. pappu sent 1,400 bags of Sugar @ Rs 700 each paying insurance Rs. 16,000 and other expenses of Rs. 11,000. Mr.Munna advanced to Mr.pappu Rs. 2,00,000 on account of the venture. All the bags of the Sugar were sold by Mr.Chintu for Rs.18,00,000 of which he deducted 4% for his expenses and 5% for his commission .Mr. Chintu remitted total amount to Mr. Munna by a bank draft and the balance amount to Mr. pappu by a bill of exchange.They settle the Accounts by bank draft. 
Show in the books of Munna Joint Venture A/C, Pappu's A/C.

Q 8.Mr.Keshav of Mathura and Mr.Krishna of Vrandavan entered into a joint venture to sale the goods with the help of their agent Mr.Arjun of Jaipur. Mr.Arjun is to be allowed 4% commission on sales and 5% of Net sales for expenses.
 
Mr. Keshav advanced Rs 2,00,000 to Mr. Krishna on account of joint venture. Mr. Keshav supplied goods worth Rs. 9,00,000 to Mr.Arjun on account of Joint venture and incurred Rs.30,000 for expenses.
Mr. Krishna supplied goods worth Rs 6,00,000 to Mr. Arjun and incurred Rs 10,000 on account of carriage outward. Mr. Krishna accepted a bill at 3 months for Rs 1,00,000 drawn by Mr.Keshav which is discounted by the holder for Rs ,97,000. All the goods were sold by Mr. Arjun for Rs 18,00,000.
Mr. Arjun remitted Rs 10,00,000 to Mr.Krishna and balance amount to Mr. Keshav. Joint Venture was closed accounts were settled with the help of Bank account.
Show Journal of Keshav