Joint Venture

20 Questions | Total Attempts: 291

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Joint Quizzes & Trivia

Questions and Answers
  • 1. 
    The parties to joint venture is called __________
    • A. 

      Co-venturers

    • B. 

      Partners

    • C. 

      Principal & Agent

    • D. 

      Friends

  • 2. 
    A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provides biscuits from stock Rs 10000. He pays expenses amounting to Rs 1000. V incurs further expenses on carriage Rs 1000. He receives cash for sales Rs 15000. He also takes over goods to the value of Rs 2000. The profit on joint venture is
    • A. 

      Rs.3000

    • B. 

      Rs.5000

    • C. 

      Rs.6000

    • D. 

      Rs.3500

  • 3. 
    A and B enter into a joint venture for purchase and sale of Type-writer. A purchased Typewriter costing Rs 100000. Repairing expenses Rs 10000, printing expenses Rs 10000. B sold it at 20% margin on selling  price. The sales value will be:  
    • A. 

      Rs. 125000

    • B. 

      Rs. 150000

    • C. 

      Rs. 100000

    • D. 

      Rs. 140000

  • 4. 
    A and B enter into a joint venture to underwrite the shares of K Ltd. K Ltd make an equity issue of 100000 equity shares of Rs 10 each. 80% of the issue are subscribed by the party. The profit sharing ratio between A and B is 3:2. The balance shares not subscribed by the public, purchased by A and B in profit sharing ratio. How many shares to be purchased by A?  
    • A. 

      80000 shares

    • B. 

      72000 shares

    • C. 

      12000 shares

    • D. 

      8000 shares

  • 5. 
    R and M entered into a joint venture to purchase and sell new year gifts. They agreed to share the profit and losses equally. R purchased goods worth Rs 1,00,000 and spent Rs 10,000in sending thegoods to M. He also paid Rs 5,000 for insurance. M spent Rs 10,000 as selling expenses and sold goods for Rs.2,00,000. Remaining goods were  taken over by him at Rs 5,000. Find out profit on venture.  
    • A. 

      Rs.70,000

    • B. 

      Rs.75,000

    • C. 

      Rs.80,000

    • D. 

      Rs.85,000

  • 6. 
    A purchased goods costing 2,00,000, B sold 4/5th of the goods for Rs 2,50,000. Balance goods were taken over by B at cost less 20%. If a same set of books is maintained, find out profit on venture.  
    • A. 

      Rs. 82000

    • B. 

      Rs .90000

    • C. 

      Rs. 50000

    • D. 

      None

  • 7. 
    If unsold goods costing Rs 20000 is taken over by Venturer at Rs 15000, the Joint Venture A/c will be credited by:    
    • A. 

      Rs.20000

    • B. 

      Rs.15000

    • C. 

      Rs.5,000

    • D. 

      Nil

  • 8. 
    A and B purchased a piece of land for Rs 20,000 and sold it for Rs 60,000 in 2005. Originally A had contributed Rs 12000 and B Rs 8000. The profit on venture will be  
    • A. 

      Rs. 40,000

    • B. 

      Rs. 20,000

    • C. 

      Rs. 60,000

    • D. 

      Nil

  • 9. 
    A and B enter into a joint venture sharing profit and losses in the ratio 2:1. A purchased goods costing Rs 2,00,000. B sold the goods for Rs 2,50,000. A is entitled to get 1% commission on purchase and B is entitled to get 5% commission on sales. The profit on venture will be:
    • A. 

      Rs.35,500

    • B. 

      Rs.36,000

    • C. 

      Rs.34,000

    • D. 

      Rs.38,000

  • 10. 
    A purchased 1000 boxes of rice costing Rs.200 each .Carriage 2000 ,Insurance 3000.4/5th the boxes where sold by B at Rs.250 per boxes.Remaining stock were taken over by B at cost .The amount of stock taken over will be:
    • A. 

      Rs.40,000

    • B. 

      Rs.41,000

    • C. 

      Rs.50,000

    • D. 

      Rs.50,200

  • 11. 
    A and B entered into a joint venture agreement to share the profits and losses in the ratio of 2:1. A supplied 100 ratio sets worth Rs.1,00,000 to B incurring expenses of Rs.5,000 for freight and issuance. B sold the 95 ratio sets for Rs.1,20,000.5 radio sets were taken over by B. The profit/loss on venture will be   
    • A. 

      Profit of Rs.20,000

    • B. 

      Profit of Rs. 15,000.

    • C. 

      Loss of Rs.20,000

    • D. 

      Profit of Rs.20,250

  • 12. 
    Memorandum Joint venture account is a :
    • A. 

      Personal account.

    • B. 

      Real account.

    • C. 

      Nominal account.

    • D. 

      None of the above

  • 13. 
    Generally, when the size of the venture is ..........,the co-ventures keep separate set of books of account for the joint venture.    
    • A. 

      Small

    • B. 

      Medium

    • C. 

      Big

    • D. 

      All of the above

  • 14. 
    In a Joint venture between A and B, A spend Rs.2,000 on freight, Rs.1,000 as godown rent, and also raised a loan from bank of Rs.50,000 at 18% p.a. repayable after 1 month. B spend Rs. 5,000 as selling expenses and he also raised a loan from bank of Rs.1,50,000 at 18% repayable after 2 months. The total expenses of Joint venture will be
    • A. 

      Rs. 8,000

    • B. 

      Rs. 8,250

    • C. 

      Rs. 5,250

    • D. 

      Rs.13,250

  • 15. 
    Ansh purchased goods costing 2,40,000. Vansh sold goods costing Rs 1,60,000 at Rs 2,40,000. Balance goods were taken over by Ansh at same gross profit percentage as in case of sale. The amount of goods taken over will be:
    • A. 

      Rs.1,20,000

    • B. 

      Rs.80,000

    • C. 

      Rs.40,000

    • D. 

      Rs.1,00,000

  • 16. 
    Ram and Shyam enter into a joint venture. Both of them deposited Rs.65,000 and Rs.32,500 respectively into a joint venture. Goods were purchased for Rs.75,000 and expenses amounting Rs.10,950 were incurred. Goods sold for Rs.90,000 and goods unsold were taken overq by Ram at an agreed value of Rs.2,700. The profit on joint venture is: 
    • A. 

      Rs. 17,700

    • B. 

      Rs. 4,500

    • C. 

      Rs.4,050

    • D. 

      Rs.6,750

  • 17. 
    Memorandum joint venture account is prepared
    • A. 

      When separate set of joint venture books is prepared.

    • B. 

      When each co-venturer keeps records of all the the joint venture transactions himself.

    • C. 

      When each co-venturer keeps records of their own joint venturer transactions

    • D. 

      None of the above

  • 18. 
    Ram in a joint venture with Shyam purchased goods costing Rs. 20,000 and sends to Shyam for sale incurring Rs.1,000 on freight. Shyam took the delivery and paid Rs.500 as carriage. He sold the goods costing Rs.18,000 for Rs. 25,000 and kept the remaining goods at cost price. Sharing equal profits of the venture, amount to be paid by Shyam to Ram will be  
    • A. 

      Rs.25,000

    • B. 

      Rs.22,250

    • C. 

      Rs.23,750

    • D. 

      Rs.24,500

  • 19. 
    X enters into a joint venture with Y. The goods were purchased by X and Y amounting Rs.20,000 and Rs.40,000 respectively. Y incurred the expenses of Rs.5,000 and received cash of Rs.1,000. Goods were sold by X and Y amounting Rs.22,000 and Rs.39,000. Goods unsold were taken over by Y for Rs.2,000. The profit or loss on joint venture is     
    • A. 

      Profit of Rs. 2,000

    • B. 

      Loss of Rs. 2,000.

    • C. 

      Profit of Rs. 1,000

    • D. 

      Loss of Rs. 1,000

  • 20. 
    Ajay bought goods of the value of Rs 20,000 and consigned them to Bijay to be sold by them on a joint venture, profits being divided equally. Ajay draws a bill on Bijay for an amount equivalent to 80% of  cost on consignment. The amount of bill will be: 
    • A. 

      Rs.16,000

    • B. 

      Rs.20,000.

    • C. 

      Rs.4,000

    • D. 

      Cannot be determined

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