Professional Documents
Culture Documents
Joint Venture Accounts
Joint Venture Accounts
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XII – BK WILLINGS TUTORIAL JOINT VENTURE ACCOUNTS
3. Accounting Methods:
The under mentioned methods are to be followed where joint venture
transactions take place:
A. Where Separate set of books is maintained [Joint Banking Method]
B. Where no separate set of books is maintained [Individual Recording Method]
C. Where Memorandum Joint Venture Account is prepared. [Not included in XII
syllabus]
A. Where separate set of books is maintained [Joint Banking Method]:
Entries under this method
(1) When Capital is contributed by the venturers:
Joint Bank A/c Dr.
To Co-Venturer’s A/c
(2) When goods or materials are brought in by co-venturers for joint venture business:
Joint Venture A/c Dr.
To Co-Venturer’s A/c
(3) When expenses of joint venture are paid by co-venturers:
Joint Venture A/c Dr.
To Co-Venturer’s A/c
(4) When goods are purchased for joint venture business and payments are made by cheque from
Joint Bank A/c:
Joint Venture A/c Dr.
To Joint Bank A/c
(5) When joint venture expenses are paid from Joint Bank A/c:
Joint Venture A/c Dr.
To Joint Bank A/c
(6) When goods are sold on cash basis and sales proceeds deposited into Joint Bank A/c:
Joint Bank A/c Dr.
To Joint Venture A/c
(7) When goods are sold on cash basis and sales proceeds deposited into Joint Bank A/c:
Debtors A/c Dr.
To Joint Venture A/c
(8) When cash is received from debtors and discount allowed:
Joint Bank A/c Dr.
Discount A/c Dr.
To Joint Venture A/c
(9) When bad debts are incurred by joint venture on account of non-collection of debts from
debtors:
Bad Debts A/c Dr.
To Debtors A/c
(10) When bad debts/discount are transferred to Joint Venture A/c:
Joint Venture A/c Dr.
To Discount/Bad Debts A/c
(11) When commission is payable to co-venturer:
Joint Venture A/c Dr.
Co-Venturer’s A/c
(12)When goods are sold and consideration is received partly in cash and partly in form of
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XII – BK WILLINGS TUTORIAL JOINT VENTURE ACCOUNTS
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XII – BK WILLINGS TUTORIAL JOINT VENTURE ACCOUNTS
To Co-Venturer A/c
A XXX
B XXX
C XXX XXX
(Profit on Joint Venture)
Total XXX Total XXX
CO-VENTURERS A/C
Particulars A B Particulars A B
To Joint Venture A/c XXX XXX By Joint Bank XXX XXX
(Assets/unsold goods taken) (Initial Contribution)
To Shares/Debentures A/c XXX XXX By Joint Venture A/c XXX XXX
(Taken Over) (Goods Supplied)
To Joint Venture A/c XXX XXX By Joint Venture A/c XXX XXX
(Shares in Joint Venture Loss) (Expenses Paid)
To Joint Bank A/c XXX XXX By Joint Venture A/c XXX XXX
(Amount paid in final settlement) (Commission/Interest)
By Joint Venture A/c XXX XXX
(Share in Profit)
By Joint Bank A/c XXX XXX
(Deficiency brought in)
Total XXX XXX Total XXX XXX
SHARES/DEBENTURES A/C
Particulars Amt. Particulars Amt.
(Rs.) (Rs.)
To Joint Venture A/c XXX By Co-Venturer’s A/c XXX
(Contract Price) (Taken Over)
To Joint Venture A/c XXX By Joint Venture A/c XXX
(Profit on share) (Loss on shares)
Total XXX Total XXX
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XII – BK WILLINGS TUTORIAL JOINT VENTURE ACCOUNTS
Journal Entries
1 When goods are purchased and supplied for joint venture business by co-venturer (himself):
Joint Venture A/c Dr.
To Goods A/c
2 When goods are purchased and supplied for joint venture by other co-venturer:
Joint Venture A/c Dr.
To Co-Venturer’s A/c (other)
3 When expenses of joint venture business are incurred and paid by co-venturer himself:
Joint Venture A/c Dr.
To Cash/Bank A/c
4 When expenses of joint venture business are incurred and paid by other co-venturer:
Joint Venture A/c Dr.
To Co-Venturer’s A/c (other)
5 When advance is sent to other co-venturer for business purpose:
Co-Venturer’s A/c (Other) Dr.
To Cash/Bank A/c
6 When advance is received from other co-venturer for business purpose:
Cash/Bank A/c Dr.
To Co-Venturer’s A/c (other)
7 When bill accepted is drawn by other co-venturer for raising finance for business:
Co-Venturer’s A/c (other) Dr.
To Bill Payable
8 When acceptance is received from other co-venturer for raising finance for business:
Bill Receivable A/c Dr.
To Co-Venturer’s A/c (other)
9 When Bill Receivable is discounted with bank:
Cash/Bank A/c Dr.
Discount A/c Dr.
To Bill Receivable
10 When discount is transferred to Joint Venture A/c:
Joint Venture A/c Dr.
To Discount A/c
11 When goods are sold on cash basis:
Cash/Bank A/c Dr.
To Joint Venture A/c
12 When goods are sold on credit basis:
Debtors A/c Dr.
To Joint Venture A/c
13 When cash is received from debtors and discount allowed:
Cash/Bank A/c Dr.
Discount A/c Dr.
To Debtors A/c
14 When bad debts is incurred in recovering cash from debtors:
Bad Debts A/c Dr.
To Debtors A/c
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XII – BK WILLINGS TUTORIAL JOINT VENTURE ACCOUNTS
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XII – BK WILLINGS TUTORIAL JOINT VENTURE ACCOUNTS
Proforma:
LEDGER ACCOUNT IN THE BOOKS OF CO-VENTURER A
Joint Venture A/c
Particulars Amt. Amt. Particulars Amt. Amt.
(Rs.) (Rs.) (Rs.) (Rs.)
To Goods A/c XXX By Cash/Bank A/c XXX
(Goods Supplied) (Sale Proceeds)
To Bank A/c (Expenses) XXX By B’s A/c
To Commission A/c (Income) XXX Goods (Sale Proceeds) XXX
To Bills Receivable A/c (Discount) XXX Materials XXX
To B’s A/c (Unsold material taken over)
Goods XXX By Plant A/c XXX
Expenses XXX (Unsold plant taken over)
Commission XXX By Agent C’s A/c XXX
Discount XXX XXX (Sales by the agent)
To Agent C’s A/c By Loss on Joint Venture
Commission XXX Profit & Loss A/c XXX
Expenses XXX XXX (Own shares)
To Profit on Joint Venture XXX B’s A/c (B’s share of loss) XXX
Profit & Loss A/c (Own share) XXX
B’s A/c (B’s share) XXX
Total XXX Total XXX
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XII – BK WILLINGS TUTORIAL JOINT VENTURE ACCOUNTS
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XII – BK WILLINGS TUTORIAL JOINT VENTURE ACCOUNTS
Problems:
1. Mr. Anand of Akola entered into a joint venture with Mr. Bakshi of Srinagar and Mr. Mirza of
Agra on the following arrangements: (a) Bakshi will purchase blankets and Mirza will purchase
carpets and both will send the goods for sale to Anand; (b) Anand will sell the goods at the best
possible price and send the remittance to Bakshi and Mirza in accordance with their dues. (c)
Profits will be shared equally among the three parties. Accordingly, Bakshi purchased 50
blankets at Rs. 100 each and spent Rs. 120 for freight. Mirza purchased 100 carpets for Rs. 100
each spent Rs. 100 each and spent 380 for freight. Anand sold all the blankets and carpets for
Rs. 25,000 and his expenses amounted to Rs. 380. He paid the dues to both Bakshi and Mirza.
Pass the necessary Journal Entries in Anand’s Journal and show joint venture A/c and the co-
venturer’s A/c, in his ledger.
2. Prakash and Kiran entered into a Joint Venture to purchase and sell the goods. They decided to
share the profits and losses in the proportion of their initial contribution. They opened a Joint
Bank Account by depositing Rs. 60,000 and Rs. 40,000 respectively. They made following
expenses from Joint Bank Account.
(i) Purchase of goods Rs. 70,000. (ii) Carriage and Insurance Rs. 18,000 (iii) Selling expenses Rs.
8,000.
Part of the goods were sold for Rs. 90,000 on cash basis and the balance for Rs. 30,000 on credit
basis. Later Rs. 28,000 could only be recovered from the debtors. The venture was closed and
the co-ventures settled their accounts.
You are required to show:
i) Joint Venture Account ii) Joint Bank Account iii) Prakash’s Account iv) Kiran’s Account
and v) Sundry Debtors Account.
3. Yahoo and Google entered into joint venture to purchase the land and sell the plots. Yahoo and
Google contributed Rs. 3,00,000 each with which they opened a ‘Joint Bank Account’.
The following payments were made from Joint Bank Account.
(a) Purchase of Land Rs. 3,00,000 (b) Development expenses Rs. 1,00,000 (c) Legal charges Rs.
40,000
Yahoo paid registration fees Rs. 30,000. ¾ of the land was sold for Rs. 5,00,000. Remaining land
was taken over at agreed value of Rs. 60,000 by Google.
Pass Journal Entries and Prepare Joint Bank Account, Joint Venture Account and Co-Venturers
Accounts.
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XII – BK WILLINGS TUTORIAL JOINT VENTURE ACCOUNTS
Rs.
Paid Wages 3,30,000
Bought materials 6,70,000
Material supplied by A 45,000
Material supplied by B 24,000
Architect’s fees paid by A 20,000
The contract was completed and the price duly received. Joint venture was closed by A taking
up all the share of the company at an agreed valuation of Rs. 1,70,000 and B taking up the stock
of materials at an agreed valuation of Rs. 17,000. Show the necessary accounts
5. Anand and Vijay enter into joint venture and agreed to share profits and losses in the ratio 3:4
respectively. Anand contributed Rs. 10,000 and Vijay Rs. 8,000 and deposited into a joint bank
account. Goods worth Rs. 16,000 were purchased. Expenses of the venture amounted to Rs.
800. Goods were sold for Rs. 21,700. The Accounts between the parties were duly settled.
Show Journal Entries, Joint Venture A/c and Joint Bank A/c.
6. Raja and Pradhan decided to undertake a business venture jointly. They agreed to share the
profits and losses in the ratio of 3/4 and 1/4 respectively. Raja supplied goods from his own
stock for the joint venture worth Rs. 4,50,000 and paid Rs. 18,000 for carriage and freight.
Pradhan supplied goods worth Rs. 3,60,000 and spent Rs. 15,000 for sundry expenses. Raja drew
a bill on Pradhan for Rs. 60,000 as an advance. Pradhan sold goods for Rs. 10,50,000. At the end
of venture the accounts were settled. Give Journal entries in the journal of Raja.
7. Mr. Baleri of Kalyan and Mr. Vyas of Dahisar entered into Joint Venture sharing profits and
losses 3:2. Mr. Baleri sent 1400 bales of cotton at Rs. 460 each paying for freight and other
charges Rs. 35,000 and Mr. Vyas sent 1600 bales of cotton Rs. 650 each paying insurance Rs.
18,500 and other charges Rs. 6,500. Mr. Baleri advanced to Mr. Vyas Rs. 80,000 on account of
the venture.
All the bales of cotton were sold by Mr. Sharma for Rs. 18,00,000 of which he deducted 2.5% for
his expenses and 3.5% for his commission. Mr. Sharma remitted Rs. 8,00,000 to Mr. Baleri by
bank draft and the balance to Vyas by a bill of exchange. Prepare Joint Venture A/c, Mr. Baleri’s
A/c and Mr. Sharma’s A/c in the books of Mr. Vyas.
8. Seth Door Chandra of Shrinagar Purchased 1,000 meters of Kashmir Silk @ Rs. 6 per meter and
sent to Seth Amir Chand of Varanasi to be sold on joint venture. Door Chandra spent Rs. 200 on
packing etc. Amir Chand spent Rs. 500 on clearing etc. Seth Door Chandra drew a bill for Rs.
5,000 which was accepted by Amir Chand. Door Chandra discounted the bill for Rs. 4,850 with
the bank. Amir Chand Sold 900 meters of cloth @ Rs. 9 per meter and spent Rs. 252 in this
respect. Remaining cloth was taken over by Door Chandra at cost plus 10%. Amir Chand had to
receive commission @ 5% on sale; the profit and loss was to be divided in the ratio of 3/5 and
2/5 between Door Chandra and Amir Chand respectively. Amir Chand sent cheese to Door
Chandra for balance due. Open necessary accounts in the books of both parties.
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XII – BK WILLINGS TUTORIAL JOINT VENTURE ACCOUNTS
9. Mr. Tambakuwala of Gujarat and Mr. Jardawala of Jaysingpur entered into a joint venture to
consign 2,000 bags of tobacco to Mr. Bidiwala of Nasik to be sold on their Joint risk, which was
in proportion of 2 : 1 respectively. Mr. Tambakuwala sent 1,000 bags of tobacco at Rs. 400 each
paying freight and other charges Rs. 25,000 and Mr. Jardawala sent 1,000 bags of tobacco at Rs.
500 each paying insurance Rs. 15,000 and other expenses Rs. 5,000. Mr. Tambakuwala advanced
to Mr. Jardawala Rs. 1,00,000 on account of the venture. All the bags of tobacco were sold by
Mr. Bidiwala for Rs. 12,00,000 of which he deducted 2% for his expenses and 3% for his
commission. Mr. Bidiwala remitted Rs. 60,000 to Mr. Tambakuwala by draft and the balance to
Jardawala by a bill of exchange. Prepare Joint Venture A/c, Mr. Jardawala’s A/c and Mr.
Bidiwala’s A/c in the books of Mr. Tambakuwala of Gujarat.
10. P and Q entered into joint venture to construct a garage for Z Ltd. At a contract price of Rs.
4,00,000 payable as follows:
Rs. 3,00,000 by cheque in 5 equal installments and balance by fully paid-up shares of Rs. 100
each.
P brought in Rs. 2,50,000 and Q Rs. 1,00,000. These amounts were deposited into a Joint Bank
A/c.
Later, following payments were made:
Purchase of materials Rs. 1,85,000; Payment of wages Rs. 80,000; Architect’s Fees Rs. 20,000;
Sundry Expenses Rs. 15,000.
P also purchased and supplied for joint venture a concrete mixer costing Rs. 20,000.
Q paid for various expenses Rs. 25,000 and also supervised the work, for which he is to be
credited by Rs. 5,000.
The garage was ready, but the work was not satisfactory. So, Z Ltd. deducted half of the amount
of the last installment (i.e. Rs. 30,000). All other consideration was paid.
P took back his concrete mixer subject to depreciation of 20%. Q took over all the shares at Rs.
105 per share. Venture came to an end and accounts between P and Q were settled.
Prepare Joint Venture A/c, Joint Bank A/c and Co-venturer’s A/c and Shares A/c in the books
of M/s. PQ & Co.
11. Ashok, Rajesh and Ramesh undertook the construction of a building at a contract price of Rs.
3,00,000 payable in cash Rs. 2,00,000 and in debentures Rs. 1,00,000. They decided to share the
profits and losses in the proportion of their initial contribution.
They opened a Joint Bank Account, Wherein they deposited the following initial amount.
Ashok Rs. 1,50,000
Rajesh Rs. 1,00,000
Ramesh Rs. 50,000
The following payments are made out through Joint Bank Account:
Rs.
Purchase of Materials 1,25,000
Purchase of Plant 22,500
Payment of Wages 38,500
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XII – BK WILLINGS TUTORIAL JOINT VENTURE ACCOUNTS
12. X and Y entered into a joint venture to underwrite the subscription at par of 2,000 equity shares
of Rs. 100 each of a newly incorporated company from pune, to be issued to the public; in
consideration of 200 fully paid-up other equity shares of the company at Rs. 100 each.
X paid Rs. 1,000 from his personal cash for legal expenses and Y paid from his personal cash Rs.
2,000 for publicity for 1,950 shares only, which were fully allotted. Y managed to bring cash for
joint venture business for the remaining unsubscribe 50 shares of Rs. 100 each. The company
paid the commission in the form of 200 fully paid shares as agreed.
All the shares including commission shares in possession of X and Y were sold at Rs. 110 per
share in the market. X received the sale proceeds of 150 shares and Y the remainder. They
shared profits and losses equally. The Joint Venture was closed and X and Y settled their
accounts. Prepare Joint Venture A/c, X’s A/c and Y’s A/c.
13. Shailaja and Sumati entered into Joint Venture. They decided to consign 500 T.V. sets to Bharati
of Baramati to be sold on their joint risk. The profits and losses to be shared in the ratio of 2:3
respectively. Shailaja sends 300 T.V. sets @ Rs. 30,000 each. She pays Rs. 2,000 for freight and
insurance. Sumati sends 200 T.V. sets @ Rs. 30,000 each. She pays Rs. 1,000 for other charges
and Rs. 600 for insurance. All T.V. sets are sold by Bharati for Rs. 1,60,000 out of which she
deducts Rs. 5,000 for her expenses and commission at 2%. Bharati remits a Bills Receivable for
Rs. 8,00,000 to Shailaja and a B/R for the balance to Sumati. Draft Journal entries in the books of
Shailaja.
14. Ankit, Babita and Chetan enter into Joint Venture sharing profits and losses in the ratio of 2:2:1.
From the following information you are asked to prepare the necessary accounts in the books of
the parties assuming that they maintain no separate set of books:
Ankit Babita Chetan
Materials Supplied 12,000 6,000 -
Expenses paid 3,000 2,000 1,000
Gross Sale Proceeds - 20,000 10,000
Unsold stock taken over - 2,000 500
15. Vinod and Vaibhav entered into Joint Venture to dispatch 800 bags of rice to Vikas to be sold on
their Joint risk which is in the proportion of 60% and 40% respectively. Vinod sent 500 bags of
rice @ 400 each by paying for insurance Rs. 700, freight Rs. 5,000 and other expenses Rs. 300.
Vaibhav sent remaining bags of rice @ Rs. 500 each by paying insurance Rs. 400 and other
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XII – BK WILLINGS TUTORIAL JOINT VENTURE ACCOUNTS
expenses Rs. 500. Vinod drew a bill on Vaibhav for Rs. 40,000 as an advance and was discounted
at 2%. The discount to be treated as Joint Venture expenses. All the bags were sold by Vikas at
Rs. 550 each out of which he deducted 4% for his expenses and 2.5% for commission. Vikas
remitted Rs. 1,50,000 to Vinod by bank draft and the balance to Vaibhav by 2 months bill. The
settlements between Co-venturers were made in cash. Prepare Joint Venture A/c, Vinod A/c and
Vikas A/c in the books of Vaibhav.
16. A and B entered into a Joint Venture for the purchase and sale of defence disposal goods. They
agreed to share profits and losses in the ratio of 2:1 respectively. Following transaction took
place 1992.
April 01 A and B paid joint bank account Rs. 36,000 and Rs. 18,000 respectively.
05 Paid rent of shop Rs. 600.
07 Purchased goods for cash Rs. 36,000 paid freight etc. Rs. 500.
15 A paid advertising Rs. 100 from his private account.
28 Sold goods and money deposited in joint bank account Rs. 19,000.
May 08 Sold goods for cash (again) Rs. 26,000.
15 Purchased goods for cash Rs. 6,000 carriage, insurance and other expenses
Rs. 60 paid by B from his private account.
25 A took away the balance of goods left unsold at an agreed price Rs. 4,000.
Prepare Joint Venture Account, Joint Bank Account and Account of A and B assume final
settlement was made on May 31.
Board Problems:
17. Mangesh and Mahesh entered into Joint Venture to produce an Advertisement firm for Sanket
Traders’s at a Contract Price of Rs. 80,000. They opened a Joint Bank Account with Bank of
Maharashtra in which Mangesh deposited Rs. 20,000 and Mahesh Rs. 40,000. They agreed to
share profits and losses equally.
Mangesh purchased raw film for Rs. 16,000 and Mangesh a Camera for Rs. 7,000. They paid
from Joint Bank Account: Artist’s Fees – Rs. 36,000, Hire of Sets – Rs. 4,000 and Technician’s
Charges – Rs. 20,000.
The film was completed but due to certain defects in films the contract price reduced by 10%,
the amount received by cheque from Sanket Traders. At the end of the venture, the Camera was
sold for Rs. 5,000 and Mangesh took over the Unused Film for Rs. 1,000.
Prepare: Joint Venture Account, Joint Bank Accounts and Co-Venturers Accounts.
(Mar.’05)
18. Mote advanced to Bande Rs. 20,000 on account of the venture. All the machines were sold by
Tole for Rs. 6,00,000 out of which he deducted 2% for his expenses and 3% for his commission
on total sales. Tole remitted Rs. 3,70,000 to Mote by Bank draft and balance to Bande by one
month’s bill.
Give Journal entries in the books of Mote. (Oct.’ 05)
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XII – BK WILLINGS TUTORIAL JOINT VENTURE ACCOUNTS
19. Ajay and Abhijeet were partners in a joint venture sharing profits and losses in the proportion of
4/5 and 1/5 respectively. Ajay supplied goods to the value of Rs. 25,000 and incurred expenses
amounting to Rs. 2,700. Abhijeet also supplied goods to the value of Rs. 7,000 and his expenses
amounted to Rs. 400. Abhijeet sold all the goods for Rs. 46,000. Abhijeet is entitled to the
commission at 5% on sales. Abhijeet settled Ajay’s account by Bank draft. Give Journal entries in
the books of Ajay. (Mar. ‘06)
20. Ashok, Kishor and Anup undertook the construction of office building at a contract price of Rs.
10,00,000. The contract price is to be received in cash Rs. 6,00,000 and Rs. 4,00,000 in shares of
that company.
They opened a Joint Bank account and contribute the following amounts.
Ashok – Rs. 3,00,000, Kishor – Rs. 3,00,000 and Anup – Rs. 2,00,000.
Ashok pays Rs. 10,000 towards an architect fee, Kishor brings into venture mixer of Rs. 25,000.
Anup brings into Venture a truck worth Rs. 55,000.
The following transactions were made from the Joint Bank account:
Purchase of materials Rs. 4,50,000.
Payments of wages Rs. 1,50,000.
Purchase of plant Rs. 30,000.
At the close of venture, ashok took over the unused materials worth Rs. 8,000.
Kishor took back mixer worth Rs. 15,000. Anup took back truck worth Rs. 35,000.
The Scrap value of plant realized Rs. 6,000.
The Contract price was received as agreed and Kishor took over shares at a value of Rs.
4,10,000.
Prepare Joint Venture A/c, Joint Bank A/c, Co-venturers’ A/c (Oct.’ 06)
21. Ram Laxman entered into a joint venture to undertake a construction of a bridge for an agreed
value of Rs. 4,00,000. The contract price is to be received in cash.
They opened a Bank A/c with their joint names and deposited there in Ram Rs. 80,000 and
Laxman Rs. 40,000 as their initial contributions. They share profits and losses in their
contribution ratio.
The following expenses were incurred from the joint bank a/c:
Purchase of materials Rs. 1,60,000.
Payment of wages Rs. 1,40,000.
Purchase of plant Rs. 24,000.
Ram paid Rs. 8,000 towards plan fee and Laxman brought in mixer worth Rs. 24,000. The work
was completed ad contract price was received as per agreements.
Ram took over unused materials of Rs. 12,000 and Laxman took back the mixer at Rs. 16,000.
The plant sold in the market for Rs. 12,000.
Prepare: Joint Venture A/c, Joint Bank A/c, Co-venturers’ A/c’s. (Mar. ‘07)
22. Ajay and Sanjay decided to undertake a business jointly. They agreed to share profits and losses
in ratio of ¾ and ¼ respectively.
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XII – BK WILLINGS TUTORIAL JOINT VENTURE ACCOUNTS
Ajay supplied goods from his own stock worth Rs. 90,000 and paid Rs. 36,000 for carriage and
freight.
Sanjay supplied goods worth Rs. 72,000 and spent Rs. 3,000 for sundry expenses.
Ajay drew on Sanjay a bill for Rs. 12,000 as an advance. Sanjay sold all the goods for Rs.
2,10,000. At the end of the venture the accounts were settled.
Give Journal Entries in the Books of Ajay. (Oct.’ 07)
23. Yashpal of Udgir and Balu of Latur entered into Joint Venture to consign 300 machines to Amol
of Amravati to be sold on their joint risk which is in the proportion of 2:3 respectively.
Yashpal sent 180 machines at Rs.300 each and paid freight Rs. 700 and sundry expenses Rs. 300.
Balu sent 120 machines at Rs. 250 each and paid for insurance Rs. 500 and carriage Rs. 500.
Amol sold all machines at Rs.400 each.
He spent Rs. 4,000 for advertisement and Rs. 1,000 for godown charges.
Amol deducted 5% commission on sales and sent Rs. 80,000 to Yashpal and to Balu by bank
draft.
Prepare: (i) Joint Venture A/c (ii) Balu’s A/c (iii) Amol’s A/c in the ledger of Yashpal.
(Mar.’ 08)
24. Rajaram and Sitaram entered into joint venture to construct an office building for Bajarang
Enterprises and decided to share profits and losses in the ratio of 3:2. Rajaram and Sitaram
contributed Rs. 2,50,000 and Rs. 1,50,000 respectively. The money was deposited into a joint
bank account.
Rajaram supplied equipments and tools valued Rs. 4,00,000 and building materials valued Rs.
3,50,000 supplied by Sitaram.
Following expenses were paid through joint bank account:
Payment of Wages Rs. 3,00,000, staff salaries Rs. 1,75,000, Architect’s Fees Rs. 50,000, and
Sundry expenses Rs. 25,000.
On Completion of construction, Bajrang Enterprises paid Rs. 20,00,000 out of which Rs.
15,00,000 in cash and the balance of Rs. 5,00,000 in fully paid-up shares of Rs. 10 each. These
shares were taken over at Rs. 12 each by Rajaram and Sitaram in equal ratio.
At the close of joint venture equipments and tools were taken up by Rajaram at an agreed value
Rs. 1,50,000 and unused materials were taken by Sitaram for Rs. 50,000.
Prepare: (a) Joint Venture A/c (b) Joint Bank A/c (c) Co-Venturer’s A/c in the books of Joint
Venture. (Oct.’ 08)
25. Shivaji of Solapur and Sambhaji of Satara into a joint venture to purchase and sale goods and
agreed to share profits and losses in the proportion of 3:2 respectively.
Shivaji sent goods of Rs. 75,000 to Sambhaji for sale.
Shivaji paid Rs. 5,500 for freight and insurance.
He drew a bill for Rs. 3,000 for carriage.
Sambhaji sold goods for Rs. 1,25,000 and paid selling expenses Rs. 2,500.
He remitted the balance to Shivaji after charging 5% commission on sales.
Co-venturers settled their accounts.
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27. Apate, Bachute and Chapate undertook construction of the Cultural Hall of a company at a
contract price of Rs. 60,000 payable in Cash Rs. 40,000 and Rs. 20,000 in the form of Debentures
of a company.
They shared profits and losses in the ratio of 3:2:1 respectively.
They opened a joint bank account wherein they deposited the following amounts:
Apate Rs. 30,000, Bachute Rs. 20,000, Chapate Rs. 10,000.
The following payments are made out through Joint Bank Account:
1)Purchase of materials Rs. 25,000
2)Payment of wages Rs. 7,700
3)Purchase of plant Rs. 4,500
4)Other charges Rs. 1,100
Apate brings a truck of Rs. 4,000
Bachute brings materials of Rs. 5,500
Chapate brings a mixer worth Rs. 1,100
At the close of the venture the unused materials were taken by Apate for Rs. 500.
Bachute took over the mixer and plant for Rs. 2,700.
The truck was sold in the market for Rs. 2,200.
The contract price was received as per the agreement.
Chapate agreed to take over the debentures at Rs. 19,000.
Prepare: (1) Joint Venture Account
(2) Joint Bank Account (3) Co-Venturer’s Account (March 2010)
28. Anand and Pramod entered into joint venture to purchase and sale plots.
Anand contributed Rs. 10,00,000 and Pramod Rs. 5,00,000 and the amount was deposited into a
joint bank account.
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29. Rokadimal of Rajkot and Gunjal of Pune, entered into a joint venture to purchase and sale goods
and agreed to share profits and losses in the proportion of 4:1 respectively.
Rokadimal sent goods of Rs. 4,00,000 to Gunjal for sale.
Rokadimal paid Rs. 11,500 for carriage.
Rokadimal drew a bill of Rs. 95,000 on Gunjal, which he accepts.
Rokadimal discounted this bill with the bank for Rs. 92,000.
The amount of discount is to be treated as Joint Venture expenditure.
Gunjal paid Rs. 13,500 for advertisement.
Gunjal sold all the goods for Rs. 5,00,000.
Gunjal paid Rs. 7,000 for selling expenses and he is entitled for a commission on sales at 5%.
Co-Venturers settled their accounts.
Give Journal Entries in the books of Gunjal of Pune. (March 2011)
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