Question

Anuska and Avani entered into joint venture contributing Rs.5,00,000 each into joint bank account to share profit and loss equally. It was agreed to pay commission @8% on the sale made by the each of them.
They purchased goods for Rs.8,00,000 and Anushka sold 60% of the same for Rs.5,20,000. Rs.25,700 was spent on loading and unloading. 30% of goods were sold by Avani for Rs.3,00,000. Closing stock was taken by the ventures in the ratio of 3:2 at cost price of purchased amount of goods and the venture's A/c settled from joint bank A/c.
Joint Bank A/c will tally at =?

• A. Rs.17,50,000
• B. Rs.18,20,000
• C. Rs.18,50,000
• D. Rs.17,00,000

Answer 1

The correct option is B Rs.18,20,000

Debit transactions in Joint bank A\c $=$ Capital contributed by Anushka $+$ Capital contributed by Avani

$=$ $5,00,000+5,00,000$

$=$ $10,00,000$

Credit transactions in Joint bank A\c $=$ Purchases $+$ Final payment to Anushka $+$ Final payment to Avani

$=$ $8,00,000+3,650+1,96,350$

$=$ $10,00,000$

Therefore, Joint bank A\C will tally at $10,00,000$.