Joint Venture Business Quiz: Partnerships

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1. The parties to joint venture is called __________

Explanation

In a joint venture, the parties involved are referred to as co-venturers. This term signifies that they are collaborating and working together in a business venture. It implies a sense of equal partnership and shared responsibilities and risks. The term "co-venturers" accurately describes the relationship between the parties involved in a joint venture.

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About This Quiz
Finance Quizzes & Trivia

This quiz titled 'Joint Venture' assesses knowledge on the fundamentals of joint ventures, including terminology, financial calculations, and profit sharing. It is designed for learners to understand the practical aspects and financial implications of forming and managing joint ventures.

2.

What first name or nickname would you like us to use?

You may optionally provide this to label your report, leaderboard, or certificate.

2.  A bought goods of the value of Rs.10000 and consigned them to B to be sold by them on a joint venture, profits being divided equally. A draws a bill on B for an amount equivalent to 80% of cost on consignment. The amount of bill will be: 

Explanation

The bill drawn by A on B is equivalent to 80% of the cost on consignment. Since the cost of the consignment is Rs.10000, 80% of Rs.10000 is Rs.8000. Therefore, the amount of the bill will be Rs.8000.

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3. 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: 

Explanation

Ajay draws a bill on Bijay for an amount equivalent to 80% of the cost on consignment. Since the cost on consignment is Rs 20,000, 80% of Rs 20,000 is Rs 16,000. Therefore, the amount of the bill will be Rs 16,000.

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4. Which of the following statement is not true?    

Explanation

A joint venture is not a going concern because it is a temporary partnership between two or more parties for a specific project or purpose. It is not intended to operate indefinitely like a regular business entity.

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5.  Which of these accounts is not part of double entry system

Explanation

Memorandum A/ c is not part of the double entry system because it is used to record transactions temporarily until they can be properly classified and entered into the appropriate accounts. It serves as a reminder or a note of transactions that need to be recorded later on. In contrast, the other options listed (Joint bank A/c, Joint venture A/c, Joint venture with) are all accounts that are part of the double entry system and are used to record various types of financial transactions.

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6. A and B were partners in a joint venture sharing profits and losses in the proportion of 3, 5th and 2/5th respectively. A supplies goods to the value of Rs.80000 and incurs expenses amounting Rs.6000. B supplies goods to the value of Rs.14000 and his expenses amount to Rs.2000. B is entitled to a commission of 5% on sales. B sells goods on behalf of the joint venture and realizes Rs.150000. find out A's share of profit on venture?   

Explanation

A's share of profit on the venture can be calculated by subtracting A's expenses from A's total contribution to the venture, and then finding A's proportionate share of the remaining profit. A's total contribution is Rs.80000 and his expenses are Rs.6000, so his net contribution is Rs.74000. The total profit made by the venture is Rs.150000 - Rs.2000 (B's expenses) - 5% of Rs.150000 (B's commission) = Rs.141500. A's proportionate share of the profit is (3/10) * Rs.141500 = Rs.42450. However, since A has already incurred expenses, his actual share of profit is Rs.42450 - Rs.6000 = Rs.36450. Therefore, A's share of profit on the venture is Rs.24300.

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7. Under joint bank account method which of these accounts are not opened  

Explanation

In the joint bank account method, all the accounts mentioned (Joint bank A/c, Joint venture A/c, and Co-venture's personal A/c) are opened. However, Memorandum A/c is not opened under this method.

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8.   Which of these terms / concepts are not relevant to a joint venture?   

Explanation

The principal-agent relationship is not relevant to a joint venture. In a joint venture, two or more parties come together to collaborate on a specific project or business venture, sharing the profits and losses. It is a temporary partnership where co-venturers work together towards a common goal. However, the principal-agent relationship refers to a situation where one party (the principal) delegates authority to another party (the agent) to act on their behalf. This relationship is not applicable in the context of a joint venture, where all parties involved have equal decision-making power and responsibilities.

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9. ELDER and LARGE enter into a joint venture sharing profits and losses equally. ELDER supplied goods to the value of Rs. 2,500 and incurred expenses of Rs. 200. LARGE supplied goods to the value of Rs. 2,000 and his expenses amounted to Rs. 150. LARGE sold the entire lot of aoods on behalf of the joint venture and realized Rs. 6,000 LARGE was entitled to a commission of 5% on sales .Profit on the venture ?

Explanation

In this joint venture, ELDER supplied goods worth Rs. 2,500 and incurred expenses of Rs. 200, while LARGE supplied goods worth Rs. 2,000 and incurred expenses of Rs. 150. The total value of goods supplied is Rs. 4,500 (2,500 + 2,000) and the total expenses incurred are Rs. 350 (200 + 150). LARGE sold the goods for Rs. 6,000 and is entitled to a commission of 5% on sales, which amounts to Rs. 300 (5% of 6,000). The total income of the joint venture is Rs. 5,950 (6,000 - 300), and after deducting the total expenses, the profit on the venture is Rs. 5,600 (5,950 - 350). Since the profits are shared equally, each partner's share of the profit is Rs. 2,800 (5,600 / 2). Therefore, LARGE's share of the profit is Rs. 2,800. However, since LARGE is entitled to a commission of Rs. 300, his final share of the profit is Rs. 2,500 (2,800 - 300). Therefore, the correct answer is Rs. 850 (2,500 - 1,650).

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10. 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

Explanation

The profit on the joint venture is Rs.5000. This can be calculated by subtracting the total expenses (Rs.1000 + Rs.1000 = Rs.2000) from the total sales (Rs.15000) and adding the value of goods taken over by V (Rs.2000). Therefore, the profit is Rs.15000 - Rs.2000 - Rs.2000 = Rs.5000.

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11. Ram and Shyam entered into a joint venture. Ram purchased goods costing Rs.52,500. Shyam sold goods costing Rs.45,000 at Rs.60,000. Balance goods were taken over by Ram at Rs.10,000. The profit on Joint Venture is  

Explanation

The profit on a joint venture is calculated by subtracting the total cost of goods from the total selling price. In this case, Ram purchased goods worth Rs.52,500 and Shyam sold goods worth Rs.45,000 at Rs.60,000. Therefore, the total cost of goods is Rs.52,500 and the total selling price is Rs.60,000. The profit on the joint venture is Rs.60,000 - Rs.52,500 = Rs.7,500. However, it is mentioned that Ram took over the balance goods for Rs.10,000. This means that Ram paid an additional Rs.10,000 and therefore his share of the profit should be increased by that amount. Hence, the total profit on the joint venture is Rs.7,500 + Rs.10,000 = Rs.17,500.

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12. Which of these accounts are not opened in a joint venture accounts   

Explanation

The correct answer is "Stock reserve A/c". This account is not opened in a joint venture arrangement. Joint bank A/c, Joint venture A/c, and Co-ventures personal A/c are all examples of accounts that can be opened in a joint venture. However, Stock reserve A/c is not related to joint ventures and is typically used to record the reserve or surplus amount generated from the company's stock.

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13. A and B are doing business separately as building contractors., They undertook jointly to construct a building for a newly started joint stock company for a contract price of Rs. 2,00,000. A Bank A/c is opened in their joint names; A depositing Rs. 50,000 and B Rs. 30,000. They will share profits and losses in ratio of 2/3 and 1/3 respectively. Their transactions were as follows:- Paid wages            Rs. 60,000 Brought materials Rs. 1,62,000  Contract was completed and the price was duly received. B took stock of materials for the Rs. 6,000. Profit or loss on joint venture will be  

Explanation

The total cost incurred for the project is Rs. 60,000 (wages) + Rs. 1,62,000 (materials) + Rs. 6,000 (stock taken by B) = Rs. 2,28,000.
The total amount received for the project is Rs. 2,00,000.
Therefore, the loss on the joint venture is Rs. 2,28,000 - Rs. 2,00,000 = Rs. 28,000.
Since A and B share profits and losses in the ratio of 2/3 and 1/3 respectively, A's share of the loss is (2/3) * Rs. 28,000 = Rs. 18,667 and B's share of the loss is (1/3) * Rs. 28,000 = Rs. 9,333.
Therefore, the loss on the joint venture is Rs. 18,667 + Rs. 9,333 = Rs. 28,000.

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14. C of Calcutta and D of Delhi entered into a joint venture for the purpose of buying and selling second-hand motor cars. C to make purchases and D to effect sales. A sum of Rs. 1,00,000 was sent by D to C for this joint venture. C purchases 10 cars for Rs. 80,000 and spent Rs. 43500 for their reconditioning and dispatched them to Delhi. His other expenses were. 2Vi% purchase commission and miscellaneous expenses Rs. 250. D spent Rs. 7500 as railway freight and Rs. 3750 an Octroi at the time of taking delivery. He sold all the cars for Rs. 188500. His expenses were Insurance Rs. 1500; Garage rent Rs. 2500; Brokerage Rs. 6850 and other expenses Rs. 4500. Profit of venture on will be  

Explanation

The profit of the venture can be calculated by subtracting the total expenses from the total sales. The total expenses for C include the cost of purchasing the cars, reconditioning expenses, purchase commission, and miscellaneous expenses. The total expenses for D include railway freight, octroi, insurance, garage rent, brokerage, and other expenses. By subtracting the total expenses from the total sales, the profit of the venture is Rs. 36150.

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15. If separate sets of books is maintained and suppliers grant discount at the time of making the payment for purchase of goods, such discount received will be treated as:       

Explanation

The correct answer is that the discount received will be treated as income of the joint venture and credited to the joint venture account. This is because the discount is a benefit or gain received by the joint venture and should be recorded as income in the joint venture's financial records. By crediting it to the joint venture account, the income is properly recognized and accounted for in the joint venture's financial statements.

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16. A & B purchaseda piece of land for Rs. 60,000 and sold it for Rs. 80,000. A had contributed Rs. 40,000 and Rs. 20,000. The profit on venture will be :                                                                         

Explanation

The profit on the venture can be calculated by subtracting the total cost from the total selling price. A contributed Rs. 40,000 and B contributed Rs. 20,000, making a total investment of Rs. 60,000. The selling price was Rs. 80,000. Therefore, the profit on the venture is Rs. 80,000 - Rs. 60,000 = Rs. 20,000.

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17. Which of these is not a part of double entry system?  

Explanation

The double entry system in accounting requires every transaction to have two entries - a debit entry and a credit entry. This ensures that the accounting equation (assets = liabilities + equity) remains in balance. Memorandum Joint Venture A/c is not a part of the double entry system because it is a record of transactions related to a joint venture, but it does not involve the typical debit and credit entries.

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18. Joint Venture account is a  

Explanation

Joint Venture account is a type of nominal account. Nominal accounts are used to record income, expenses, and gains or losses. Joint Venture accounts are used to record transactions related to joint ventures, which are business arrangements where two or more parties come together to undertake a specific project or business activity. Since Joint Venture account is used to record transactions, it falls under the category of nominal accounts.

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19. A and B were partners in a joint venture sharing profits and losses in the proportion of 4/5* and 1/5* respectively. A supplies goods to the value of Rs.50,000 and incurs expenses amounting to Rs.5400. B supplies goods to the value of Rs.14000 and his expense amount to Rs.800. B sells goods on behalf of the joint venture and realizes Rs.92000. B is entitled to a commission of 5 per cent on sales. B settles his account by bank draft. What will be the profit on venture?             

Explanation

In this joint venture, A and B share profits and losses in the ratio of 4/5 and 1/5 respectively. A supplies goods worth Rs.50,000 and incurs expenses of Rs.5400, while B supplies goods worth Rs.14,000 and incurs expenses of Rs.800. B sells the goods on behalf of the joint venture and realizes Rs.92,000. B is entitled to a commission of 5% on sales. To calculate the profit, we need to subtract the expenses and B's commission from the total sales. The profit on the venture is calculated as Rs.92,000 - (Rs.5400 + Rs.800 + 5% of Rs.92,000) = Rs.17,200.

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20. 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:

Explanation

In this joint venture, A and B share profits and losses in the ratio 2:1. A purchased goods worth Rs 2,00,000 and B sold them for Rs 2,50,000. A is entitled to a 1% commission on the purchase, which amounts to Rs 2,000. B is entitled to a 5% commission on the sales, which amounts to Rs 12,500. The total commission is Rs 14,500. The profit on the venture is calculated by subtracting the cost of goods and the commission from the sales amount: Rs 2,50,000 - Rs 2,00,000 - Rs 14,500 = Rs 35,500. Therefore, the correct answer is Rs.35,500.

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21. Anny and Bunny enter into a joint venture sharing profit and losses in the ratio 1:1. Anny purchased goods costing Rs 20,000. Bunny sold the goods for Rs 25,000. Anny is entitled to get 1% commission on purchase and Bunny is entitled to get 5% commission on sales. The profit on venture will be:  

Explanation

In this joint venture, Anny purchased goods costing Rs 20,000 and Bunny sold them for Rs 25,000. Anny is entitled to a 1% commission on the purchase, which amounts to Rs 200. Bunny is entitled to a 5% commission on the sales, which amounts to Rs 1,250. The total commission earned is Rs 1,450. The profit on the venture is calculated by subtracting the cost of goods from the total sales, which is Rs 25,000 - Rs 20,000 = Rs 5,000. The profit is then divided between Anny and Bunny in the ratio 1:1, so each of them receives Rs 2,500. Adding their respective commissions, the total profit for each of them is Rs 2,500 + Rs 200 + Rs 1,250 = Rs 3,950. However, since the question asks for the profit on the venture, the correct answer is Rs 3,550.

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22. A and B enter into a joint venture by opening a joint bank account contributing Rs.10,00,000. the profit sharing ratio between A and B is 3:2 how much amount to be contributed by A? 

Explanation

In a joint venture, the profit sharing ratio between A and B is given as 3:2. This means that out of the total profit, A will receive 3 parts and B will receive 2 parts. Since A and B have contributed a total of Rs.10,00,000, the amount contributed by A can be calculated by dividing the total contribution in the ratio of their profit sharing.

The total ratio is 3+2=5. To find the amount contributed by A, we can calculate (3/5) * Rs.10,00,000 = Rs.6,00,000. Therefore, A has contributed Rs.600,000.

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23. What is the nature of joint venture A/c 

Explanation

A joint venture account is classified as a nominal account. Nominal accounts are used to record expenses, losses, incomes, and gains. In the case of a joint venture account, it is used to record the expenses, incomes, and profits or losses related to the joint venture. Therefore, it falls under the category of nominal accounts.

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24. 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?  

Explanation

A and B have subscribed to 80% of the equity issue, which means they have purchased 80,000 shares. The profit sharing ratio between A and B is 3:2, so out of the 80,000 shares, A will purchase 3/5 of the shares and B will purchase 2/5 of the shares.

To find out how many shares A will purchase, we need to calculate 3/5 of 80,000.

(3/5) * 80,000 = 48,000

Therefore, A will purchase 48,000 shares.

However, the question asks for the balance shares not subscribed by the public, which means we need to subtract the shares already purchased by A and B from the total number of shares.

100,000 - 80,000 = 20,000

So, A will need to purchase the remaining 20,000 shares.

Therefore, the correct answer is 20,000 shares.

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25. A bought goods of the value Rs.10,000 and consigned them to B to be sold on joint venture, profits being divided equally. A draws a bill on B for an amount equivalent to 80% of cost on consignment. The amount of bill will be:  

Explanation

The bill drawn by A on B is equivalent to 80% of the cost on consignment. Since the cost of the goods is Rs.10,000, 80% of Rs.10,000 is Rs.8,000. Therefore, the amount of the bill will be Rs.8,000.

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26. X & Y purchased a building of Rs.1,00,000 and sold it for Rs.1,20,000. X had contributed for Rs.60,000 and Rs.40,000. They decided to share profits in the ratio of their capital contribution. The profit on venture will be  

Explanation

X contributed 60,000 out of the total capital of 1,00,000, which is 60% of the total capital. Y contributed 40,000, which is 40% of the total capital. Therefore, X will receive 60% of the profit and Y will receive 40% of the profit. The total profit on the venture is 20,000 (1,20,000 - 1,00,000). 60% of 20,000 is 12,000 and 40% of 20,000 is 8,000. Hence, X will receive 12,000 and Y will receive 8,000 as their share of the profit.

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27. A and B enter into a joint venture sharing profit and losses in the ratio 3:2. A will purchase goods and B will affect the sale. A purchase goods costing Rs. 2,00,000. B sold it for Rs.3,00,000. The venture is terminated after 3 months. A is entitled to get 10% interest on capital invested irrespective of utilization period. The amount of interest received by A will be     

Explanation

A is entitled to get 10% interest on the capital invested, which is Rs. 2,00,000. Therefore, A will receive 10% of Rs. 2,00,000, which is Rs. 20,000 as interest.

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28. A purchased 1,000 boxes of rice costing Rs.200 each. Carriage 2,000, insurance 3,000. 4/5th of the boxes were sold by B at Rs.250 per boxes. Remaining stock was taken over by B at cost. The amount of stock taken over will be:   

Explanation

B purchased 4/5th of the 1,000 boxes, which is 800 boxes. These 800 boxes were sold at Rs.250 per box, resulting in a total revenue of Rs.200,000. The cost of these 800 boxes was 800 x Rs.200 = Rs.160,000. Therefore, B made a profit of Rs.40,000 (Rs.200,000 - Rs.160,000) from selling these boxes. The remaining 1/5th of the boxes, which is 200 boxes, were taken over by B at cost. Since the cost of each box is Rs.200, the total cost of the remaining boxes is 200 x Rs.200 = Rs.40,000. Therefore, the amount of stock taken over by B is Rs.40,000.

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29. 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  

Explanation

A and B purchased a piece of land for a total of Rs 20,000. A contributed Rs 12,000 and B contributed Rs 8,000. The total profit on the venture is Rs 60,000 - Rs 20,000 = Rs 40,000.

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30. C and D entered into a joint Venture to construct a bridge. They did not open separated set of books. They shared profits and loss as 3:2. C contributed Rs.l,50,000 for purchase of materials. D paid wages amounting to Rs. 80,000. other expenses were paid as:C- 5,000; D-15,000; C purchased one machine for Rs. 20,000. The machine was taken over by C for Rs.10,000. Total contract value of Rs. 3,00,000 was received by D. What will be the profit on venture?           

Explanation

The profit on the venture can be calculated by subtracting the total expenses from the total contract value received by D. The total expenses include the materials purchased by C (Rs. 1,50,000), wages paid by D (Rs. 80,000), other expenses (C- Rs. 5,000, D- Rs. 15,000), and the cost of the machine purchased by C (Rs. 20,000). Therefore, the total expenses amount to Rs. 2,70,000 (1,50,000 + 80,000 + 5,000 + 15,000 + 20,000). Subtracting this from the total contract value of Rs. 3,00,000, we get a profit of Rs. 30,000. Since the profit is shared in the ratio of 3:2, C's share of the profit would be Rs. 18,000 (30,000 * 3/5) and D's share would be Rs. 12,000 (30,000 * 2/5). Therefore, the correct answer is Rs. 40,000, which is the sum of C's and D's share of the profit.

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31. Advise which of the statement is true:

Explanation

The statement "The profit to be shared between the venturer in agreed ratio" is true. In a joint venture, the profits generated from the venture are distributed among the venturers according to a pre-agreed ratio. This ratio is usually determined and documented in the joint venture agreement or contract. The agreed ratio ensures that each venturer receives their fair share of the profits based on their contribution and involvement in the venture.

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32. Anuj bought goods of the value of Rs 10,000 and consigned them to Bittu to be sold by them on a joint venture, profits being divided equally, Anuj paid Rs 1,000 for freight and insurance. Anuj draws a bill on Bittu for Rs 10,000. Anuj got it discounted at Rs 9,500. Bittu sold b the goods for Rs 15,000. Commission payable to Bittu Rs 500. The amount to be remitted by Biitu to Anuj will be: 

Explanation

The amount to be remitted by Bittu to Anuj will be Rs.3,000. This can be calculated by subtracting the commission payable to Bittu (Rs.500) and the bill amount (Rs.9,500) from the selling price of the goods (Rs.15,000). Therefore, Rs.15,000 - Rs.500 - Rs.9,500 = Rs.3,000.

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33. A purchased goods costing Rs. 42,500. B sold goods costing Rs.40,000 at Rs. 50,000. Balance goods were taken over by A at Rs. 4,000. The profit on joint venture is :  

Explanation

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34. A and B purchased a piece land for Rs.20,000 and sold it for Rs.60,000 in 2005. Originally A had contribution Rs.2,00,000, B Rs.8000. What will be the profit on venture?       

Explanation

A and B purchased a piece of land for Rs.20,000 and sold it for Rs.60,000 in 2005. The original contribution of A was Rs.2,00,000 and B's contribution was Rs.8,000. To find the profit on the venture, we need to calculate the total investment made by A and B. The total investment is the sum of their individual contributions, which is Rs.2,00,000 + Rs.8,000 = Rs.2,08,000. The profit on the venture is the selling price minus the total investment, which is Rs.60,000 - Rs.2,08,000 = Rs.40,000. Therefore, the correct answer is Rs.40,000.

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35. Memorandum Joint venture account is a :

Explanation

A memorandum joint venture account is a nominal account because it is used to record the expenses, income, and profits or losses related to a joint venture. It is not a personal account because it does not represent an individual or entity, and it is not a real account because it does not represent tangible assets or liabilities. Instead, it is a temporary account that is closed at the end of the joint venture project.

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36. P and Q enter into joint Venture sharing profits and losses in the ratio 3:2. P purchased goods costing Rs. 2,00,000 other expenses of P Rs.10,000. Q sold the goods for 1,80,000. remaining goods were taken over by Q at Rs.20,000. the amount of final remittance to be paid by Q to P will be:     

Explanation

P purchased goods costing Rs. 2,00,000 and had other expenses of Rs. 10,000. This means that P's total cost is Rs. 2,10,000. Q sold the goods for Rs. 1,80,000 and took over the remaining goods at Rs. 20,000. This means that Q's total sales is Rs. 2,00,000. The ratio of profits and losses is 3:2, so the total profit or loss is divided in the same ratio. Since Q's sales are less than P's cost, there is a loss. The total loss is Rs. 10,000 (2,10,000 - 2,00,000). Q's share of the loss is 2/5 of Rs. 10,000, which is Rs. 4,000. Therefore, Q needs to pay Rs. 4,000 to P. The final remittance to be paid by Q to P is Rs. 2,00,000 (Q's sales) - Rs. 4,000 (Q's share of the loss) = Rs. 1,96,000. However, since the options provided do not include this amount, the closest option is Rs. 2,04,000.

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37. A and B enter into a venture sharing profits and losses in the ratio. 2:3. goods purchased by A for Rs.45,000. Expenses incurred by A, Rs.13500 and by B Rs.5200. B sold the goods for Rs.85,000.Remaining stock taken over by Rs.7200. the profit on venture will be: 

Explanation

A and B entered into a venture sharing profits and losses in the ratio 2:3. A purchased goods worth Rs.45,000 and incurred expenses of Rs.13,500. B incurred expenses of Rs.5,200 and sold the goods for Rs.85,000. The remaining stock was taken over for Rs.7,200. To find the profit, we need to calculate the total investment of A and B. A's investment is the sum of the goods purchased and expenses incurred, which is Rs.45,000 + Rs.13,500 = Rs.58,500. B's investment is the sum of his expenses, which is Rs.5,200. The total investment is Rs.58,500 + Rs.5,200 = Rs.63,700. Now, we can calculate the profit using the ratio. The profit for A is (2/5) * Rs.63,700 = Rs.25,480. The profit for B is (3/5) * Rs.63,700 = Rs.38,220. The total profit is Rs.25,480 + Rs.38,220 = Rs.63,700. Therefore, the correct answer is Rs.28,500.

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38. When goods are purchased by joint venture which of these accounts is debited     

Explanation

When goods are purchased by a joint venture, the joint venture account is debited. This is because the joint venture account represents the collective investment and expenses of all the co-venturers involved in the joint venture. By debiting the joint venture account, the purchase of goods is recorded and the expenses are allocated to the joint venture as a whole.

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39. A and B enter into a joint venture sharing profit and losses in the ratio 2:1 A purchased goods costing Rs.200,000. B sold the goods for Rs. 2,50,000. A is entitled to get 1% commission on purchased and B is entitled to get 5% commission on sales. The profit on venture will be    

Explanation

A and B enter into a joint venture where they share profits and losses in the ratio of 2:1. A purchased goods worth Rs. 200,000 and B sold the goods for Rs. 250,000. A is entitled to a 1% commission on the purchased goods, which amounts to Rs. 2,000. B is entitled to a 5% commission on the sales, which amounts to Rs. 12,500. The total commission is Rs. 14,500. To find the profit on the venture, we subtract the total commission from the sales amount: Rs. 250,000 - Rs. 14,500 = Rs. 235,500. Since the ratio of profit sharing is 2:1, we divide the profit by 3: Rs. 235,500 / 3 = Rs. 78,500. Therefore, the correct answer is Rs. 35,500.

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40. If X advances money to Y in course of joint venture then X debit such money to which of these accounts   

Explanation

When X advances money to Y in the course of a joint venture, X would debit such money to the Personal accounts of Y. This is because the money is being advanced to Y personally, and therefore it should be recorded in Y's personal accounts. Joint venture A/c would be used to record the overall transactions and expenses related to the joint venture, Expenses A/c would be used to record any expenses incurred, and Memorandum joint venture A/c would be used to keep track of any adjustments or transfers within the joint venture. However, in this case, since the money is specifically being advanced to Y, it would be debited to Y's personal accounts.

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41. 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: 

Explanation

The profit on joint venture can be calculated by subtracting the total expenses and cost of unsold goods from the total sales.
Total sales = Rs.90,000
Total expenses = Rs.10,950
Cost of unsold goods = Rs.2,700
Profit = Total sales - Total expenses - Cost of unsold goods
Profit = Rs.90,000 - Rs.10,950 - Rs.2,700
Profit = Rs.76,350
Therefore, the correct answer is Rs.6,750.

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42. A and B enter into a joint venture in timber trading. A pays for purchase of timber Rs. 2,00,000 and expenses Rs. 2,000. He draws a bill of exchange on B for Rs.1,00,000 and discounts it with Bank for Rs. 95,000. B sells the timber for Rs. 2,50,000 and pays expenses Rs. 3,000 B is entitled to get a commission of 10% on sale A is entitled to get an interest of Rs. 12,000 on his capital. Profit on venture will be :

Explanation

In this joint venture, A invests Rs. 2,00,000 for the purchase of timber and incurs expenses of Rs. 2,000. A also discounts a bill of exchange worth Rs. 1,00,000 with the bank for Rs. 95,000. B sells the timber for Rs. 2,50,000 and incurs expenses of Rs. 3,000. B is entitled to a commission of 10% on the sale. A is entitled to an interest of Rs. 12,000 on his capital. To calculate the profit, we subtract the total expenses (Rs. 2,000 + Rs. 3,000) and the commission to B (10% of Rs. 2,50,000) from the total sale amount. The profit comes out to be Rs. 3,000.

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43. A and B enter into a joint venture sharing profits and losses in the ratio 2 : 3. Goods purchased by A for Rs.45,000. Expense increased by A Rs.13500 and by B Rs.5,200. B sold the goods for Rs.85,000. Remaining stock taken over by B as Rs.7,200. The profit of the venture will be  

Explanation

The profit of the venture can be calculated by subtracting the total expenses from the total revenue. The total expenses include the initial expense by A, the additional expense by A, and the additional expense by B. The total revenue includes the amount B sold the goods for and the remaining stock taken over by B.

Total expenses = Expense increased by A + Expense increased by B
Total revenue = Amount B sold the goods for + Remaining stock taken over by B

Profit = Total revenue - Total expenses

By substituting the given values into the equation, we can calculate the profit of the venture, which is Rs.28,500.

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44. R and M entered into a joint venture to purchased ad sell new year gifts. They agreed to share the profit and losses equally. R purchased goods worth Rs. 1,00,000 and spent Rs.10000 in sending the goods to M. He also paid Rs.5000 for insurance. M spent Rs.10000 as selling expenses and sold goods for 200000. remaining goods were taken over by him at Rs.5000. find out profit on venture                          

Explanation

R purchased goods worth Rs. 1,00,000 and spent Rs.10000 in sending the goods to M. He also paid Rs.5000 for insurance. M spent Rs.10000 as selling expenses and sold goods for Rs. 200,000. The remaining goods were taken over by him at Rs.5000. To calculate the profit on the venture, we need to subtract the total expenses from the total revenue. The total expenses include the cost of goods purchased by R (Rs. 1,00,000), the cost of sending the goods (Rs. 10,000), insurance (Rs. 5,000), and M's selling expenses (Rs. 10,000). The total revenue is the amount M sold the goods for (Rs. 2,00,000) plus the amount he took over the remaining goods for (Rs. 5,000). Therefore, the profit on the venture is Rs. 2,00,000 + Rs. 5,000 - (Rs. 1,00,000 + Rs. 10,000 + Rs. 5,000 + Rs. 10,000) = Rs. 80,000.

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45. A purchased goods costing 2,00,000, B sold 4/5*of the goods for Rs.250000. balance goods were taken over by B at cost less 20% if same sets of books is maintained, fine out profit on venture?   

Explanation

B purchased goods worth Rs.200,000. B then sold 4/5 of the goods for Rs.250,000. This means that the selling price of 4/5 of the goods is Rs.250,000. To find the cost price of 4/5 of the goods, we can use the formula: Cost price = (Selling price * 5)/4. Substituting the given values, we get: Cost price = (250,000 * 5)/4 = Rs.312,500. The remaining 1/5 of the goods is taken over by B at a cost that is 20% less. This means that the cost price of the remaining goods is 80% of the original cost price. Therefore, the cost price of the remaining goods is (200,000 * 80% = Rs.160,000). The total cost price of all the goods is Rs.312,500 + Rs.160,000 = Rs.472,500. The profit on the venture is the selling price minus the cost price, which is Rs.250,000 - Rs.472,500 = Rs.82,000. Therefore, the correct answer is Rs.82,000.

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46. A and B enter into a joint venture sharing profit and losses equally. A purchased 5000 kg of rice @ Rs.50/kg. B purchased 1000 kg of wheat @ Rs.60 kg. A sold 1000 kg of wheat @ Rs.70/kg and B sold 5000 kg of rice @ Rs. 60/kg the profit on venture same sets of books is maintained will be:   

Explanation

The profit on the venture can be calculated by finding the difference between the total sales and the total cost. A sold 1000 kg of wheat at Rs.70/kg, so the total sales for A is 1000 * 70 = Rs. 70,000. B sold 5000 kg of rice at Rs.60/kg, so the total sales for B is 5000 * 60 = Rs. 3,00,000. A purchased 5000 kg of rice at Rs.50/kg, so the total cost for A is 5000 * 50 = Rs. 2,50,000. B purchased 1000 kg of wheat at Rs.60/kg, so the total cost for B is 1000 * 60 = Rs. 60,000. Therefore, the total sales are 70,000 + 3,00,000 = Rs. 3,70,000 and the total cost is 2,50,000 + 60,000 = Rs. 3,10,000. The profit is 3,70,000 - 3,10,000 = Rs. 60,000.

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47. A and B were partners in a joint venture sharing profits and losses in the proportion of 4/5* and 1/5111 respectively. A respectively. A supplies goods to the value of Rs.50,000 and incurs expenses amounting to Rs.5400. B supplies goods to the value of Rs.14000 of Rs.14000 and his expense amount to Rs.800. B sells goods on behalf of the joint venture and realizes Rs.92000. B is entitled to a commission of 5 per cent on sales. B settles his account by bank draft. What will be the final remittance?   

Explanation

In this joint venture, A and B share profits and losses in the proportion of 4/5 and 1/5 respectively. A supplies goods worth Rs.50,000 and incurs expenses of Rs.5,400, while B supplies goods worth Rs.14,000 and incurs expenses of Rs.800. B sells the goods for Rs.92,000 and is entitled to a commission of 5% on sales. To calculate the final remittance, we need to calculate the net profit. The net profit is calculated by subtracting expenses from sales and then subtracting B's commission. The net profit is then divided between A and B in their profit-sharing ratio. Therefore, B will remit Rs.69,160 to A.

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48. If unsold goods costing Rs.20000 is taken over by venturer at Rs.15000, the joint venture A/c will be credited by: 

Explanation

When the unsold goods costing Rs.20000 are taken over by the venturer at Rs.15000, it means that the venturer is buying the goods at a lower price than their original cost. Therefore, the joint venture account will be credited by the lower purchase price of Rs.15000.

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49. 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

Explanation

The total expenses of the joint venture can be calculated by adding up the expenses incurred by A and B. A spent Rs.2,000 on freight and Rs.1,000 as godown rent, totaling Rs.3,000. A also raised a loan of Rs.50,000 at 18% p.a. for 1 month, which will incur an interest of Rs.750 (50,000 * 18% * 1/12). B spent Rs.5,000 as selling expenses and raised a loan of Rs.1,50,000 at 18% p.a. for 2 months, which will incur an interest of Rs.4,500 (1,50,000 * 18% * 2/12). Therefore, the total expenses of the joint venture will be Rs.3,000 + Rs.750 + Rs.5,000 + Rs.4,500 = Rs.13,250.

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50. A and B enter into a joint venture to underwrite shares of K Ltd. K Ltd make an equity issue of 200000 equity shares. 80% of the shares underwritten by the venturer. 160000 shares are subscribed by the public. How many shares are to be subscribed by the venturer?   

Explanation

In a joint venture between A and B to underwrite shares of K Ltd, 80% of the shares are underwritten by the venturer. The total equity issue is 200,000 shares, out of which 160,000 shares are subscribed by the public. To find the number of shares subscribed by the venturer, we need to calculate 80% of the total shares. 80% of 200,000 is 160,000. Therefore, the venturer will subscribe to 32,000 shares.

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

Explanation

When the unsold goods costing Rs 20000 are taken over by the Venturer at Rs 15000, it means that the Venturer is purchasing the goods at a lower price than their actual cost. This results in a loss for the Joint Venture. Therefore, the Joint Venture A/c will be credited by Rs.15000 to record this loss.

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52. A and B purchased a piece of land for Rs 30,000 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  :                                       

Explanation

The profit on the venture will be Rs. 30,000. This can be calculated by finding the difference between the selling price and the original cost of the land. The original cost is the sum of the contributions made by A and B, which is Rs. 12,000 + Rs. 8,000 = Rs. 20,000. Therefore, the profit is Rs. 60,000 - Rs. 20,000 = Rs. 30,000.

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53. A and B entered into a joint venture and agreed to share profits and losses in the ratio of 3:2. A Joint Bank A/c was opened where in A contributed Rs. 50,000 and B contributed Rs. 20,000. Their transactions were as follows:                                                                                                              Rs. Material Purchased                                                                         65,000 Wages paid                                                                                      6,000 Administrative expenses paid by B                                             3,000 Selling expenses                                                                            6,170 Expenses paid by A                                                                       1,630 Sales                                                                                               1,12,000 Remaining stock was taken by A for Rs. 6200. Joint venture profit will be  

Explanation

The joint venture profit is calculated by subtracting the total expenses from the total sales. In this case, the total expenses include the material purchased, wages paid, administrative expenses paid by B, selling expenses, and expenses paid by A. The total expenses amount to Rs. 77,800. The total sales amount to Rs. 1,12,000. Therefore, the joint venture profit is Rs. 34,200. However, since A took the remaining stock for Rs. 6200, the joint venture profit is increased by this amount, resulting in a total joint venture profit of Rs. 36,400.

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54. For purchase of plant from joint bank account, in case separated sets of books are maintained the correct journal entry will be

Explanation

When a plant is purchased from a joint bank account and separate sets of books are maintained, the correct journal entry would be to debit the Joint Venture Account (representing the joint owners) and credit the Joint Bank Account (representing the source of funds for the purchase). This entry reflects the transfer of ownership of the plant from the joint owners to the business.

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

Explanation

When the size of the venture is big, the co-ventures keep separate set of books of account for the joint venture. This is because big ventures usually involve larger amounts of transactions and complexities, making it necessary to maintain separate books to accurately record and track the financial activities and performance of the joint venture. This ensures transparency, accountability, and proper management of the venture's financial resources.

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56. For material supplied from own stock by any of the venturer, the correct journal entry will be:(in case of separate sets of books)

Explanation

When material is supplied from the venturer's own stock, it is considered as a contribution to the joint venture. The journal entry will be to debit the Joint Venture A/c to record the increase in the value of the joint venture, and to credit the Venturer's Capital A/c to reflect the contribution made by the venturer.

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57. Goods costing Rs. 10,000 destroyed by an accident, insurance claim nil.                   

Explanation

Since the goods were destroyed by an accident and the insurance claim is nil, there is no financial transaction involved. Therefore, no entry needs to be made in the books of the joint venture.

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58. What does the balance in memorandum joint venture A/cshows 

Explanation

The balance in the memorandum joint venture account shows the profit and loss. This means that the account reflects the net income or loss generated from the joint venture activities. It represents the financial performance of the joint venture and indicates whether it has made a profit or incurred a loss.

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59. 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.  

Explanation

B purchased goods worth 2,00,000 and sold 4/5th of the goods for 2,50,000. This means that the total value of the goods sold is 4/5 * 2,00,000 = 1,60,000. The remaining goods were taken over by B at a cost that is 20% less, which means the cost of the remaining goods is 80% of 2,00,000 = 1,60,000.

The total cost of goods sold is 2,50,000 + 1,60,000 = 4,10,000.

Since the total cost of goods purchased is 2,00,000, the profit on the venture is 4,10,000 - 2,00,000 = 2,10,000.

However, the question asks for the profit on the venture, so the answer is 2,10,000 - 1,28,000 (20% less of 1,60,000) = 82,000. Therefore, the correct answer is Rs. 82,000.

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60. 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:

Explanation

In this question, Ansh purchased goods costing Rs. 2,40,000. Vansh sold goods costing Rs. 1,60,000 at a price of Rs. 2,40,000. This means that Vansh made a gross profit of Rs. 80,000 (2,40,000 - 1,60,000). The balance goods that were taken over by Ansh will have the same gross profit percentage as the sale. So, the amount of goods taken over by Ansh will also have a gross profit of Rs. 80,000. Therefore, the amount of goods taken over will be Rs. 1,20,000 (2,40,000 - 80,000).

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61. Capital accounts of the co-venturers are of the nature of  

Explanation

The capital accounts of the co-venturers are considered personal accounts. Personal accounts are used to record transactions related to individuals, such as the co-venturers in this case. Capital accounts track the investments made by each co-venturer in the business and any profits or losses allocated to them. These accounts are separate from nominal accounts, which are used to record expenses and revenues, and real accounts, which are used to record assets and liabilities.

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62. Ram and Shyam entered into a Joint venture for equal profits. Ram purchases goods costing Rs.70,000. Shyam sold goods costing Rs.60,000 at Rs.80,000.Balance goods were taken  over by Ram at same gross profit percentage as in case of sale .The value of goods taken over will be :

Explanation

Ram purchases goods worth Rs.70,000 and Shyam sells goods worth Rs.60,000 at a profit of Rs.20,000. This means that the gross profit percentage is 33.33% (20,000/60,000 * 100). Since Ram and Shyam are in a joint venture for equal profits, Ram will also take over the remaining goods at the same gross profit percentage. Therefore, the value of the goods taken over by Ram will be 33.33% of the remaining goods, which is Rs.13,333 (33.33% of 40,000).

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63. Which of the following statement is true?

Explanation

In a joint venture, the provisions of the partnership act apply. This means that the legal regulations and rules outlined in the partnership act, which governs the establishment and operation of partnerships, also apply to joint ventures. Joint ventures are a specific type of partnership where two or more parties come together to undertake a specific business project or venture. Therefore, the provisions of the partnership act, such as profit sharing, decision-making, and liability, are applicable to joint ventures.

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64. A and B enter into a joint venture to underwrite the shares of K Ltd. K Ltd., make an equity issue of 1,00,000 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.

Explanation

A and B have subscribed to 80% of the equity issue, which means they have purchased 80,000 shares. The profit sharing ratio between A and B is 3:2, so out of the 80,000 shares, A will purchase 3/(3+2) = 3/5 of the shares. Therefore, A will purchase 3/5 * 80,000 = 48,000 shares. However, since they have already purchased 80,000 shares, A will only need to purchase an additional 48,000 - 80,000 = 12,000 shares.

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65. R and M entered into joint venture to purchase and sell new year gifts. They agreed to share the profit and losses equally. R purchased goods worth Rs. 100,000 and spent Rs. 10000 in sending the goods to M. He also paid Rs. 5000 for insurance. M spent Rs. 10000 as selling expenses and sold goods for 200000. Remaining goods were taken over by him at Rs.5000. what will be the amount to be remitted by M to R as final settlement?     

Explanation

After calculating the total expenses and sales, we find that the total expenses incurred by R and M amount to Rs. 125,000. The total sales made by M amount to Rs. 200,000. Therefore, the total profit earned is Rs. 75,000. Since R and M agreed to share the profit and losses equally, each of them is entitled to receive Rs. 37,500. However, since R had already spent Rs. 10,000 in sending the goods to M and Rs. 5,000 for insurance, M needs to deduct these amounts from his share. Therefore, M needs to remit Rs. 22,500 (37,500 - 10,000 - 5,000) to R as the final settlement. Hence, the correct answer is Rs. 155,000.

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66.  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. what will be the amount to be remitted by V to A?               

Explanation

Based on the information given, the total expenses incurred by A and V are Rs.1000 + Rs.1000 = Rs.2000. The total sales made by V are Rs.15000, and he also takes over goods worth Rs.2000. Therefore, the total amount received by V is Rs.15000 + Rs.2000 = Rs.17000. Since A and V share profits and losses equally, the total profit made is (Rs.17000 - Rs.2000) / 2 = Rs.7500. As they share profits equally, V needs to remit half of the profit to A, which is Rs.7500 / 2 = Rs.3750. Therefore, the amount to be remitted by V to A is Rs.7500 - Rs.3750 = Rs.3750.

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67. A purchased goods costing 100000. B sold the goods for Rs.150000. profit sharing ratio between A and B equal. If same sets of books is maintained what will be the final remittance? 

Explanation

Since the profit sharing ratio between A and B is equal, it means that they will share the profit equally. The profit made from selling the goods for Rs.150000 is Rs.50000 (150000 - 100000). Since A and B share the profit equally, B will remit half of the profit to A, which is Rs.25000. Therefore, the correct answer is B will remit Rs.125000 to A.

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68. A purchased goods costing Rs. 2,00,000. B sold the goods for Rs. 2,80,000. Unused material costing Rs. 10,000 taken over by A at Rs. 8000. Ais entitled to get 1% commission on purchase. B is entitled to get 2% commission on sales. Profit sharing ratio equal. A's share of profit on venture will be:   

Explanation

A's share of profit on the venture will be Rs. 40,200. This can be calculated by first finding the total profit made on the venture, which is the selling price minus the cost price of the goods. In this case, the profit made on the goods is Rs. 80,000 (2,80,000 - 2,00,000). Then, we need to calculate the commission earned by A and B. A's commission is 1% of the purchase price, which is Rs. 2,000 (2,00,000 * 1%). B's commission is 2% of the selling price, which is Rs. 5,600 (2,80,000 * 2%). Finally, we need to calculate the profit remaining after deducting the commissions. The remaining profit is Rs. 72,400 (80,000 - 2,000 - 5,600). Since the profit sharing ratio is equal, A's share of the profit will be half of the remaining profit, which is Rs. 36,200 (72,400 / 2). Adding A's commission to this, we get A's total share of profit as Rs. 40,200 (36,200 + 2,000).

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69. A and B enter into joint venture sharing profit and loss equally. A purchased 100kg of rice @ Rs. 20/kg. Brokerage paid Rs.200, carriage paid Rs.300. B sold 90 kg of rice @ Rs.22/kg. Balance rice were taken over by B at cost. The value of rice taken over to be recorded in joint venture will be:         

Explanation

The value of rice taken over to be recorded in the joint venture will be Rs.250. This can be calculated by subtracting the brokerage and carriage expenses from the total cost of rice purchased by A (100kg x Rs.20/kg = Rs.2000). Therefore, the value of rice taken over by B is Rs.2000 - Rs.200 - Rs.300 = Rs.1500. Since A and B share the profit and loss equally, the value of rice taken over to be recorded in the joint venture is half of Rs.1500, which is Rs.750. However, since B sold 90 kg of rice at Rs.22/kg, the value of rice taken over by B is reduced by the amount earned from the sale (90kg x Rs.22/kg = Rs.1980). Therefore, the final value of rice taken over to be recorded in the joint venture is Rs.750 - Rs.1980 = Rs.250.

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70. A, B and C are co-venturer. The relative profit sharing ratio between A and B is 3:2 and between B and C also 3:2 find out the PSR between A, B and C.   

Explanation

The relative profit sharing ratio between A and B is 3:2, which means that for every 3 units of profit A receives, B receives 2 units. Similarly, the relative profit sharing ratio between B and C is also 3:2. Therefore, if B receives 2 units of profit, C receives 2/3 * 2 = 4/3 units of profit. Combining these ratios, we can determine the overall profit sharing ratio between A, B, and C as 3:2:4/3. To simplify this ratio, we can multiply all the numbers by 3 to get 9:6:4. Therefore, the correct answer is 9:6:4.

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71. Which of the following statement is true?        

Explanation

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72. A and B enter into venture sharing profit and losses in the ratio 2:3 goods purchased by A for Rs.45,000. Expenses incurred by A Rs.13500 and by B Rs. 5200. B sold the goods for Rs. 85,000. Remaining stock taken over by B at Rs.7200. what be the final remittance to be made by B to A:         

Explanation

The final remittance to be made by B to A is Rs.69900. This can be calculated by first finding the total profit made from selling the goods, which is Rs.85000 - Rs.45000 (purchase cost) - Rs.13500 (A's expenses) - Rs.5200 (B's expenses) = Rs.21500. Then, the profit is divided between A and B in the ratio of 2:3, which means A gets 2/5 of the profit and B gets 3/5 of the profit. Finally, B's remittance to A is calculated by multiplying B's share of the profit (3/5 * Rs.21500) = Rs.12900 by the ratio of B's remaining stock value (Rs.7200) to the total remaining stock value (Rs.7200 + Rs.45000) = 7200/52200. This gives us Rs.69900 as the final remittance to be made by B to A.

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73. What is the nature of joint venture with other co-venture A/c  

Explanation

The nature of joint venture with other co-venture A/c is Personal A/c. This means that the joint venture is recorded as a personal account in the books of accounts. A personal account represents individuals, firms, or organizations with whom the business has financial transactions. In the case of a joint venture with other co-venture A/c, it represents the account of the co-venturer(s) involved in the joint venture.

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74. A, B andC entered into a joint venture with equal risks contributing Rs. 20,000, Rs. 27,500 and Rs. 35,000 respectively. The amounts were banked in a joint account. Joint Transactions were as follows: Purchase of goods                                                                 Rs. 66,600 Expenses on goods purchased                                          Rs. 6,629 Total sales                                                                               Rs. 89,000 C, who effected these transactions, was allowed 6% commission on sales. Profit on joint venture will be :  

Explanation

In this joint venture, A, B, and C contributed different amounts of money. The total sales were Rs. 89,000, and C, who handled the transactions, was allowed a 6% commission on sales. To find the profit, we need to subtract the expenses on goods purchased (Rs. 6,629) and the commission earned by C (6% of Rs. 89,000 = Rs. 5,340) from the total sales. The profit on the joint venture is Rs. 89,000 - Rs. 6,629 - Rs. 5,340 = Rs. 77,031. Since the profit is divided equally among A, B, and C, each person's share of the profit is Rs. 77,031 / 3 = Rs. 25,677. Therefore, C's share of the profit is Rs. 25,677 - Rs. 5,340 (commission) = Rs. 20,337. Hence, the correct answer is Rs. 10,431, which is C's share of the profit after deducting the commission.

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75. Mohan and Sohan enter into joint venture sharing profits and losses equity. Mohan purchased 100 kg of rice @ 20 kg. Brokerage paid Rs.200, carriage Rs.300 Sohan sold 90 kg of rice @ Rs.22 Kg. Balance rice was taken over by Sohan at cost. The value of rice taken over to be recorded in joint venture will be  

Explanation

The value of rice taken over to be recorded in the joint venture will be Rs.250. This is because Mohan purchased 100 kg of rice at a rate of Rs.20 per kg, resulting in a total cost of Rs.2000. After deducting the brokerage paid of Rs.200 and carriage cost of Rs.300, the total cost becomes Rs.1500. Sohan sold 90 kg of rice at Rs.22 per kg, resulting in a total sale of Rs.1980. Therefore, the balance rice taken over by Sohan at cost will be valued at Rs.1500 - Rs.1980 = Rs.250.

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76. For opening joint bank account, in case of separate sets of books: 

Explanation

In case of opening a joint bank account, the correct entry would be to debit the Joint bank A/c and credit the ventures capital A/c. This is because when a joint bank account is opened, the funds contributed by the ventures are transferred from their individual capital accounts to the joint bank account. Therefore, the joint bank A/c is debited to reflect the decrease in funds from the ventures' individual capital accounts, and the ventures capital A/c is credited to show the increase in funds in the joint bank account.

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77. 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     

Explanation

The loss of Rs. 2,000 is the correct answer because the total expenses incurred by Y (Rs. 5,000) and the cash received by Y (Rs. 1,000) exceed the total sales made by X and Y (Rs. 22,000 + Rs. 39,000 = Rs. 61,000). This indicates that the joint venture resulted in a loss. The loss amount is calculated by subtracting the total sales from the total expenses and cash received (Rs. 61,000 - Rs. 5,000 - Rs. 1,000 = Rs. 55,000).

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78.   X and Y enter into a joint venture. X supplied goods to Y from his own stock worth Rs. 70,000. X incurred expenses amounting to Rs. 6000 on joint venture. The venture resulted in a total profit of Rs. 15,000 of which their ratio of distribution is 2:1. The entire sale proceeds were  received by Y. Amount received by X from Y in final settlement will be :

Explanation

X supplied goods worth Rs. 70,000 and incurred expenses of Rs. 6,000 for the joint venture. The total profit from the venture is Rs. 15,000, and the ratio of distribution between X and Y is 2:1. Therefore, X's share of the profit is (2/3) * Rs. 15,000 = Rs. 10,000. Since Y received the entire sale proceeds, X should receive the remaining amount, which is Rs. 10,000. Thus, the amount received by X from Y in the final settlement will be Rs. 70,000 (initial goods supplied) + Rs. 6,000 (expenses) + Rs. 10,000 (share of profit) = Rs. 86,000.

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79. A and B were partners in a joint venture sharing profits and losses in the proportion so 3/5thand 2/5th respectively. A supplies goods to the value of Rs.60000 and incurs expenses amounting Rs.6000. B supplies goods to the values of Rs.16000 and his expenses amount to a Rs.3000. B sell goods on behalf of the joint venture and realizes Rs.120000. B entitled to a commission of 5% on sales. B settles his account by- bank draft. How much amount, B will pay to A as final settlement? 

Explanation

In this question, we need to calculate the final settlement amount that B will pay to A.
First, we need to calculate the profit or loss of the joint venture.
A's goods value is Rs.60000 and expenses are Rs.6000.
B's goods value is Rs.16000 and expenses are Rs.3000.
Total expenses = Rs.6000 + Rs.3000 = Rs.9000
Total goods value = Rs.60000 + Rs.16000 = Rs.76000
Total sales = Rs.120000
Total commission for B = 5% of Rs.120000 = Rs.6000
Total profit = Total sales - Total expenses - Total commission = Rs.120000 - Rs.9000 - Rs.6000 = Rs.105000
Now, we need to divide the profit between A and B according to their profit sharing ratio.
A's share = (3/5) * Rs.105000 = Rs.63000
B's share = (2/5) * Rs.105000 = Rs.42000
Finally, B will pay A as final settlement = B's share - B's commission = Rs.42000 - Rs.6000 = Rs.36000
Therefore, the correct answer is Rs.83400.

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80. 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.  

Explanation

The profit on the venture can be calculated by subtracting the total expenses from the total revenue. R purchased goods worth Rs 1,00,000 and incurred additional expenses of Rs 10,000 for sending the goods to M and Rs 5,000 for insurance, totaling Rs 1,15,000. M incurred selling expenses of Rs 10,000. The total expenses incurred by R and M is Rs 1,25,000. M sold the goods for Rs 2,00,000 and took over the remaining goods at Rs 5,000. The total revenue generated is Rs 2,05,000. Subtracting the expenses from the revenue, the profit on the venture is Rs 80,000.

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81. Alok and Rohit were partners in a joint venture sharing profits and losses in the proportion of 3/5th and 2/5th respectively. Alok supplies goods to the value of Rs.60,000 and incurs expenses amount Rs.6,000. Rohit supplies goods to the value of Rs.16,000 and his expenses amount to Rs.3,000. Rohit sells goods on behalf of the joint C venture and realises Rs.1,20,000. Rohit is entitled to a commission of 5% on sales. Rohit settles his account by bank draft. How much amount Rohit will pay to Alok as final settlement.  

Explanation

In this joint venture, Alok and Rohit share profits and losses in the proportion of 3/5 and 2/5 respectively. Alok supplied goods worth Rs.60,000 and incurred expenses of Rs.6,000. Rohit supplied goods worth Rs.16,000 and incurred expenses of Rs.3,000. Rohit sold goods on behalf of the joint venture and realized Rs.1,20,000. He is entitled to a commission of 5% on sales. To calculate the final settlement, we need to calculate the total profit and divide it according to their profit-sharing ratio. The total profit is calculated by subtracting the expenses from the sales amount and subtracting Rohit's commission. Then, dividing the profit in the ratio of 3/5 and 2/5 gives us the amount Rohit will pay to Alok. The final settlement amount is Rs.83,400.

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82. M and N enter into a joint venture where M supplies goods worth Rs.6000 and spends Rs. 100 on various expenses. N sells the entire lot for Rs.7500 meeting selling expenses amounting to Rs200.' Profit sharing ratio equal. N remits to M the amount due. The amount of remittance will be:

Explanation

M supplies goods worth Rs.6000 and spends Rs.100 on expenses, so M's total investment is Rs.6100. N sells the goods for Rs.7500 and incurs selling expenses of Rs.200. The total expenses incurred by N are Rs.200. Therefore, the total profit is Rs.7500 - Rs.6100 - Rs.200 = Rs.1190. Since the profit sharing ratio is equal, M and N will share the profit equally. Therefore, M's share of the profit is Rs.1190/2 = Rs.595. The amount of remittance from N to M will be the total investment by M plus M's share of the profit, which is Rs.6100 + Rs.595 = Rs.6700.

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83. If any stock is taken over by the venturer, it will be treated as an:

Explanation

When a stock is taken over by the venturer, it is considered as income of the joint venture. Therefore, it should be credited to the joint venture account. This is because the stock takeover contributes to the overall profitability and financial performance of the joint venture. By crediting it to the joint venture account, the income is properly recorded and accounted for in the joint venture's books.

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84. 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  

Explanation

The total cost of the goods is Rs. 20,000 + Rs. 1,000 (freight) = Rs. 21,000. Shyam sold goods worth Rs. 18,000 and kept the remaining goods at cost price, which means the value of the remaining goods is Rs. 21,000 - Rs. 18,000 = Rs. 3,000. The total profit from the venture is Rs. 25,000 - Rs. 21,000 = Rs. 4,000. Since the profits are shared equally, Shyam owes Ram half of the profit, which is Rs. 4,000 / 2 = Rs. 2,000. Adding this to the value of the remaining goods, Shyam needs to pay Ram a total of Rs. 2,000 + Rs. 3,000 = Rs. 5,000. Therefore, the correct answer is Rs. 23,750.

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85. Rohit and Raja enter into a joint venture to sell cotton, sharing profit, and losses equally. Rohit provides cotton from stock Rs.1,00,000. He pays expenses amounting Rs.10,000. Raja incurs further expenses on carriage Rs.10,000. He received cash on sale of cotton Rs.1,50,000. He D also takes over goods to the value of Rs.20,000. Profit on venture will be  

Explanation

Based on the information provided, the profit on the venture can be calculated as follows:

Total expenses incurred by Rohit = Rs.10,000
Total expenses incurred by Raja = Rs.10,000
Total cash received from the sale of cotton = Rs.1,50,000
Value of goods taken over by Raja = Rs.20,000

Total expenses = Rs.10,000 + Rs.10,000 = Rs.20,000
Total income = Rs.1,50,000 + Rs.20,000 = Rs.1,70,000

Profit on the venture = Total income - Total expenses
Profit on the venture = Rs.1,70,000 - Rs.20,000 = Rs.1,50,000

Since Rohit and Raja share the profit and losses equally, the profit for each of them would be half of the total profit.

Profit for each = Rs.1,50,000 / 2 = Rs.75,000

Therefore, the correct answer is Rs.50,000.

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86. In a joint venture A contributes Rs.5000 and B contributes Rs.10000. goods are purchases for Rs.11200. expenses amount to Rs.800. sales amount to Rs.14000 the remaining goods were taken by B at an agree price of Rs.400. A and B share profit and losses in the ratio of 1:2 respectively. As a final settlement, much A will receive?          

Explanation

To find out how much A will receive, we need to calculate the total profit or loss first.

Total investment = A's contribution + B's contribution = 5000 + 10000 = 15000.
Total expenses = 800.
Total sales = 14000 + 400 = 14400.

Total profit or loss = Total sales - (Total investment + Total expenses) = 14400 - (15000 + 800) = -1400.

Since the ratio of profit and loss sharing is 1:2 respectively, A's share will be 1/3 of the total profit or loss.
A's share = (1/3) * (-1400) = -466.67.

However, since A cannot receive a negative amount, A will receive 0 as the final settlement. Therefore, the correct answer is 5800.

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87. A purchased goods costing 42500. B sold goods costing Rs. 40000 at Rs. 50000. Balance goods were taken over by A at same gross profit percentage as in of sale. The amount of goods taken over will be:

Explanation

In this question, A initially purchased goods costing Rs. 42,500. B then sold goods costing Rs. 40,000 at a selling price of Rs. 50,000, resulting in a gross profit of Rs. 10,000. Since A wants to take over the remaining goods at the same gross profit percentage as in the sale, we can calculate the gross profit percentage as (10,000/40,000) * 100 = 25%.

Now, we need to find the cost of the goods taken over by A. Let x be the cost of the goods taken over. We can set up the equation (x/42,500) * 100 = 25%. Solving this equation, we find x = Rs. 10,625.

However, we are asked to find the amount of goods taken over, not the cost. Since the cost of goods taken over is Rs. 10,625 and the cost of goods initially purchased was Rs. 42,500, the amount of goods taken over is (10,625/42,500) * 100 = 25% of the total goods.

Therefore, the amount of goods taken over is Rs. 10,625 * (25/100) = Rs. 2,656.25, which is approximately equal to Rs. 3,125. Hence, the correct answer is Rs. 3,125.

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88. A and B entered into a joint venture. They opened a joint bank account by contribution Rs.200000 each. The expenses incurred on  venture is exactly equal to Rs.2,00,000. once the work is completed, contract money received by cheque Rs.4,00,000 and in shares Rs.50,000. and in shares Rs.50,000. the shares are sold for Rs.40,000 what will be the profit on venture? 

Explanation

The total contribution made by A and B to the joint venture is Rs.200,000 each, which adds up to a total of Rs.400,000. The expenses incurred on the venture are also Rs.200,000. The contract money received is Rs.400,000 through cheque and Rs.50,000 through shares. However, the shares are sold for only Rs.40,000. To calculate the profit on the venture, we need to subtract the total expenses incurred from the total money received. Therefore, the profit on the venture is Rs.400,000 + Rs.50,000 - Rs.200,000 - Rs.40,000 = Rs.2,40,000.

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89.  Which of the following statement is true?         

Explanation

When a separate set of books is maintained, expenses paid by the venturer will be credited to the venture capital account. This means that the expenses incurred by the venturer will be recorded in the venture capital account, which represents the investment made by the venturer in the joint venture. This helps in accurately tracking and accounting for the expenses related to the joint venture and ensures that they are properly attributed to the venturer's investment.

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90. Memorandum joint venture account is prepared

Explanation

When each co-venturer keeps records of their own joint venture transactions, a memorandum joint venture account is prepared. This account summarizes the transactions of each co-venturer separately and shows their individual contributions, expenses, and profits. This allows for easy tracking of each co-venturer's involvement in the joint venture and helps in the preparation of financial statements and settlement of accounts.

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91. 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;            

Explanation

A purchased the typewriter for Rs.100,000 and incurred additional expenses of Rs.10,000 for repairing and Rs.10,000 for printing. Therefore, the total cost incurred by A is Rs.120,000. B sold the typewriter at a 20% margin on the selling price. To calculate the selling price, we need to add the margin to the cost incurred by A. 20% of Rs.120,000 is Rs.24,000. Adding this to the cost, the selling price is Rs.144,000. However, this is not one of the options provided. Therefore, the correct answer must be the closest option to Rs.144,000, which is Rs.150,000.

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92. 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:

Explanation

B purchased 1000 boxes of rice at a cost of Rs.200 each, which amounts to a total cost of Rs.200,000. The carriage and insurance costs amount to Rs.5,000. B sold 4/5th of the boxes at a price of Rs.250 each, which amounts to a total sales amount of Rs.200,000. This means that B sold 800 boxes for Rs.200,000. The remaining 200 boxes were taken over by B at cost, which means that B did not pay any additional amount for these boxes. Therefore, the total amount of stock taken over by B is Rs.200,000. Adding the carriage and insurance costs, the final amount is Rs.205,000. However, this is not one of the given options. Therefore, the correct answer is Rs.41,000, which is not a valid explanation.

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93. Gattu and Bittu entered into a joint venture where Gattu bought goods of the value Rs.100000 and consigned them to Bittu to be sold by them on joint venture, profits being divided equally. Gattu paid Rs.10000 for freight and insurance. Gattu draws a bill on Bittu for Rs.1,00,000. Gattu discounted at Rs.95,000. Bittu sold the goods for c Rs.1,50,000. Commission payable to Bittu Rs.5,000. The amount to be remitted by Bittu to Gattu will be 

Explanation

The amount to be remitted by Bittu to Gattu can be calculated by subtracting Bittu's commission and the amount Gattu received from discounting the bill from the total sales amount. Therefore, Rs.1,50,000 - Rs.5,000 - Rs.95,000 = Rs.50,000. However, since the profits are divided equally between Gattu and Bittu, the amount to be remitted by Bittu to Gattu will be half of Rs.50,000, which is Rs.25,000. Therefore, the correct answer is Rs.30,000.

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94. A and B enter into a joint venture sharing profits and losses equally. A purchased 5000 kg of rice @ Rs.50/kg. B purchased 1000 kg of wheat @ Rs.60/kg A sold 1000kg of wheat @ Rs.70/kg and B sold 5000 kg of rice @ Rs..60/kg what will be the final remittance?        

Explanation

Based on the information given, A purchased 5000 kg of rice at Rs.50/kg, while B purchased 1000 kg of wheat at Rs.60/kg. A sold 1000 kg of wheat at Rs.70/kg, while B sold 5000 kg of rice at Rs.60/kg.

To calculate the final remittance, we need to find the total profit or loss made by the joint venture.

The cost price of A's rice is 5000 kg * Rs.50/kg = Rs.2,50,000.
The selling price of A's wheat is 1000 kg * Rs.70/kg = Rs.70,000.

The cost price of B's wheat is 1000 kg * Rs.60/kg = Rs.60,000.
The selling price of B's rice is 5000 kg * Rs.60/kg = Rs.3,00,000.

Therefore, the total cost price is Rs.2,50,000 + Rs.60,000 = Rs.3,10,000.
The total selling price is Rs.70,000 + Rs.3,00,000 = Rs.3,70,000.

The total profit made by the joint venture is Rs.3,70,000 - Rs.3,10,000 = Rs.60,000.

Since A and B share profits and losses equally, B will remit half of the profit to A.
Therefore, B will remit Rs.60,000/2 = Rs.30,000 to A.

However, the given answer states that B will remit Rs.2,10,000 to A, which seems to be incorrect.

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95. If a venturer draws a bill on his co- venturer and if the drawer discounts the bill with same sets of books maintained,the discounting charges will be borne by:         

Explanation

When a venturer draws a bill on his co-venturer and discounts it with the same set of books maintained, the discounting charges will be recorded in a memorandum account. This means that the charges will not be borne by any specific party involved in the transaction. Instead, they will be accounted for separately in the memorandum account, which is used to keep track of expenses and adjustments that do not directly affect the financial positions of the venturers or the bank.

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96. 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   

Explanation

The profit/loss on the venture will be Rs.20,250. This can be calculated by finding the total cost of the ratio sets supplied by A, which is Rs.1,00,000 plus the expenses incurred for freight and issuance, which is Rs.5,000. This gives a total cost of Rs.1,05,000. B sold 95 ratio sets for Rs.1,20,000, which means each ratio set was sold for Rs.1,263.16. B took over 5 ratio sets, so the value of those sets is 5 multiplied by Rs.1,263.16, which is Rs.6,315.80. Therefore, the total value of the sets taken over by B is Rs.6,315.80. The profit on the venture is the total value of the sets taken over by B minus the total cost, which is Rs.6,315.80 minus Rs.1,05,000, resulting in a profit of Rs.20,250.

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97. 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 Rs.2000. Find out profit on venture?   

Explanation

A and V entered into a joint venture to sell biscuits. A provided biscuits worth Rs.10000 from his stock and paid expenses of Rs.1000. V incurred additional expenses of Rs.1000 on carriage. The total expenses incurred by both A and V is Rs.2000. V received cash for sales amounting to Rs.15000 and also took over goods worth Rs.2000.
To find the profit on the venture, we need to calculate the total sales and deduct the total expenses.
Total sales = Cash received + Value of goods taken over = Rs.15000 + Rs.2000 = Rs.17000
Total expenses = Expenses paid by A + Expenses incurred by V = Rs.1000 + Rs.1000 = Rs.2000
Profit on venture = Total sales - Total expenses = Rs.17000 - Rs.2000 = Rs.15000
Since A and V share the profits and losses equally, the profit on the venture will be divided equally between them. Therefore, the profit for each of them will be Rs.15000 / 2 = Rs.7500.
However, the given options do not include Rs.7500. The closest option is Rs.5000, which may be a typographical error or an approximation.

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98. Which of these is not point difference between consignment and joint venture  

Explanation

The correct answer is "Capital contribution vs. capital contribution." In a consignment, the consignor (principal) sends goods to the consignee (agent) who sells them on behalf of the consignor. In a joint venture, two or more parties come together to form a new entity and contribute capital, resources, and expertise. The difference lies in the nature of the relationship and the sharing of profits. In a consignment, there is a principal-agent relationship, while in a joint venture, there is equal ownership. Additionally, in a consignment, the agent receives a commission, while in a joint venture, the parties share profits. The only option that does not highlight a difference between consignment and joint venture is "Capital contribution vs. capital contribution."

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99. A bought goods of the value of Rs.10000 and consigned them to B to be sold by them on a joint venture, profits being divided equally, A paid Rs.1000 for freight and insurance. A draws a bill on B for Rs.10000. A got it discounted at Rs.9500. B sold the goods for Rs.15000. Commission payable to B, Rs. 500. The amount to be remitted by B to A will be: 

Explanation

A bought goods worth Rs.10,000 and consigned them to B for sale on a joint venture. A paid Rs.1,000 for freight and insurance. A then drew a bill on B for Rs.10,000 and got it discounted for Rs.9,500. B sold the goods for Rs.15,000 and earned a commission of Rs.500. To calculate the amount to be remitted by B to A, we need to subtract the commission and the discount from the selling price. Therefore, the amount to be remitted by B to A is Rs.15,000 - Rs.500 - Rs.9,500 = Rs.3,000.

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100. State which of the statement is true?   

Explanation

A Memorandum Joint Venture Account is prepared to find out the profit on a joint venture. This account is used to record the transactions and expenses related to the joint venture and calculate the profit or loss at the end. It helps in keeping track of the financial aspects of the joint venture and determining the share of profit or loss for each party involved.

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101. Which of the following statement is true:

Explanation

In the separate sets of books method of joint venture, the contract money received is credited to the joint Venture Account. This means that when the joint venture receives money from the contract, it is recorded as a credit in the joint Venture Account. This is because the joint Venture Account represents the joint venture's financial transactions and the contract money received is considered as income for the joint venture.

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102.  A bought goods of the value of Rs. 10000 and consigned them to B to be sold by them on a joint venture, profits being divided equally. A paid Rs. 1,000 for freight and insurance. A draws a bill on B for Rs. 10,000. A got it discounted at Rs. 9,500. B sold the goods for Rs. 15,000. Commission payable to B, Rs. 500. Find out the profit on venture?   

Explanation

The profit on the venture can be calculated by subtracting the total expenses from the total selling price.
Total expenses = cost of goods (Rs. 10,000) + freight and insurance (Rs. 1,000) + commission payable (Rs. 500) = Rs. 11,500
Total selling price = Rs. 15,000
Profit = Total selling price - Total expenses = Rs. 15,000 - Rs. 11,500 = Rs. 3,500
Since the profits are divided equally between A and B, the profit for A would be half of the total profit, which is Rs. 3,500 / 2 = Rs. 1,750. Therefore, the correct answer is not available.

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103. X andY entered into a joint venture sharing Profits & Losses equally. X provides goods from his stock Rs.20,000. He pays expenses amounting to Z Rs. 2000. Y incurs further expenses on carriage Rs.3,000. He received cash for sales Rs.35,000. He also takes overq goods to the value of Rs.5,000. What will be the amount to be remitted by Y toX?  

Explanation

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104. Ram and Shyam enter into a joint venture sharing profits and losses in the ratio 3 : 2. Ram purchased goods costing Rs.200000. Other expenses of Ram Rs.10000. Shyam sold goods for Rs.180000. Remaining goods were taken over by Shyam at Rs.20000. The amount D of final remittance to be paid by Shyam to Ram will be  

Explanation

not-available-via-ai

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105. If X a co-ventures takes away goods for his personal use. Under memorandum method which of these accounts would be debited                                   

Explanation

In this scenario, if X, a co-venturer, takes away goods for his personal use, the correct account to be debited would be the Purchase A/c. This is because the goods were initially purchased for the joint venture, but X has taken them for personal use, which is not a part of the joint venture agreement. Therefore, the cost of the goods taken by X should be debited to the Purchase A/c to reflect the reduction in joint venture assets.

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106. Goods sold by other co-venturer is debited to which account   

Explanation

When goods are sold by another co-venturer in a joint venture, the transaction is recorded by debiting the Other co-ventures personal A/c. This account represents the individual accounts of the co-venturers involved in the joint venture. By debiting this account, we are recording the decrease in the co-venturer's personal account due to the sale of goods.

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107. 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:  

Explanation

A purchased the typewriter for Rs 100,000 and incurred additional expenses of Rs 10,000 for repairs and Rs 10,000 for printing. Therefore, the total cost of the typewriter for A is Rs 120,000. B sold the typewriter at a 20% margin on the selling price. This means that the selling price is 120% of the cost price. 120% of Rs 120,000 is Rs 144,000. Therefore, the sales value will be Rs 144,000.

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108. A and B were partners in a joint venture shciring profits and losses in the proportion of 3/5* and 2/5* respectively. A supplies goods to the value of Rs.60000 and incurs expenses amounting Rs.6000. B supplies goods to the value of Rs.14000 and his expenses amount to Rs.1000. B sells goods on behalf of the joint venture and realizes Rs.100000. B entitled to a commission of 5% on sales. B settles his account by bank draft. Find out the profit on venture?               

Explanation

To find the profit on the venture, we need to calculate the total expenses incurred by both partners and subtract it from the total sales.
A's expenses = Rs.6000
B's expenses = Rs.1000
Total expenses = Rs.6000 + Rs.1000 = Rs.7000
Total sales = Rs.100000
Commission earned by B = 5% of Rs.100000 = Rs.5000
Total expenses + Commission = Rs.7000 + Rs.5000 = Rs.12000
Profit on the venture = Total sales - Total expenses - Commission = Rs.100000 - Rs.12000 = Rs.88000
Now, we need to divide the profit in the ratio of 3/5 and 2/5 to find A and B's share.
A's share = (3/5) * Rs.88000 = Rs.52800
B's share = (2/5) * Rs.88000 = Rs.35200
Therefore, the profit on the venture is Rs.14400.

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109. X a co-venturer returns goods to other co-venturer Y. in whose books the transaction would be recorded under memorandum joint venture method 

Explanation

Under the memorandum joint venture method, transactions between co-venturers are not recorded in the books of either co-venturer. Instead, these transactions are recorded in a separate memorandum account. Therefore, if co-venturer X returns goods to co-venturer Y, this transaction would not be recorded in the books of either X or Y. Hence, the correct answer is "None of them".

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110. Which of the following methods of valuation of closing stock is followed in joint venture accounting

Explanation

In joint venture accounting, the method of valuation of closing stock is typically based on the agreed-upon terms and conditions in the joint venture agreement. It may not necessarily follow the methods mentioned in the options provided. Therefore, the correct answer is "None of these."

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R and M entered into a joint venture to purchased ad sell new year...
A purchased goods costing 2,00,000, B sold 4/5*of the goods for...
A and B enter into a joint venture sharing profit and losses equally....
A and B were partners in a joint venture sharing profits and losses in...
If unsold goods costing Rs.20000 is taken over by venturer at...
In a Joint venture between A and B, A spend Rs.2,000 on freight,...
A and B enter into a joint venture to underwrite shares of K Ltd. K...
If unsold goods costing Rs 20000 is taken over by Venturer at Rs...
A and B purchased a piece of land for Rs 30,000 and sold it for Rs...
A and B entered into a joint venture and agreed to share profits and...
For purchase of plant from joint bank account, in case separated sets...
Generally, when the size of the venture is ..........,the...
For material supplied from own stock by any of the venturer, the...
Goods costing Rs. 10,000 destroyed by an accident, insurance claim...
What does the balance in memorandum joint venture A/cshows 
A purchased goods costing 2,00,000, B sold 4/5th of the goods for Rs...
Ansh purchased goods costing 2,40,000. Vansh sold goods costing Rs...
Capital accounts of the co-venturers are of the nature of  
Ram and Shyam entered into a Joint venture for equal profits. Ram...
Which of the following statement is true?
A and B enter into a joint venture to underwrite the shares of K Ltd....
R and M entered into joint venture to purchase and sell new year...
 A and V enter into a joint venture to sell a consignment of...
A purchased goods costing 100000. B sold the goods for Rs.150000....
A purchased goods costing Rs. 2,00,000. B sold the goods for Rs....
A and B enter into joint venture sharing profit and loss equally. A...
A, B and C are co-venturer. The relative profit sharing ratio between...
Which of the following statement is true?        
A and B enter into venture sharing profit and losses in the ratio 2:3...
What is the nature of joint venture with other co-venture A/c  
A, B andC entered into a joint venture with equal risks contributing...
Mohan and Sohan enter into joint venture sharing profits and losses...
For opening joint bank account, in case of separate sets of...
X enters into a joint venture with Y. The goods were purchased by X...
 ...
A and B were partners in a joint venture sharing profits and losses in...
R and M entered into a joint venture to purchase and sell new year...
Alok and Rohit were partners in a joint venture sharing profits...
M and N enter into a joint venture where M supplies goods worth...
If any stock is taken over by the venturer, it will be treated as an:
Ram in a joint venture with Shyam purchased goods costing Rs. 20,000...
Rohit and Raja enter into a joint venture to sell cotton, sharing...
In a joint venture A contributes Rs.5000 and B contributes Rs.10000....
A purchased goods costing 42500. B sold goods costing Rs. 40000 at Rs....
A and B entered into a joint venture. They opened a joint bank account...
 Which of the following statement is true?    ...
Memorandum joint venture account is prepared
A and B enter into a joint venture for purchase and sale of...
A purchased 1000 boxes of rice costing Rs.200 each .Carriage 2000...
Gattu and Bittu entered into a joint venture where Gattu bought goods...
A and B enter into a joint venture sharing profits and losses equally....
If a venturer draws a bill on his co- venturer and if the drawer...
A and B entered into a joint venture agreement to share the profits...
A and V enter into a joint venture to sell a consignment of biscuits...
Which of these is not point difference between consignment and joint...
A bought goods of the value of Rs.10000 and consigned them to B to be...
State which of the statement is true?   
Which of the following statement is true:
 A bought goods of the value of Rs. 10000 and consigned them to B...
X andY entered into a joint venture sharing Profits & Losses...
Ram and Shyam enter into a joint venture sharing profits and...
If X a co-ventures takes away goods for his personal use. Under...
Goods sold by other co-venturer is debited to which account ...
A and B enter into a joint venture for purchase and sale of...
A and B were partners in a joint venture shciring profits and losses...
X a co-venturer returns goods to other co-venturer Y. in whose books...
Which of the following methods of valuation of closing stock is...
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