Question

C & D entered into a joint venture to construct a bridge. They did not open separate set of books. They shared profits and losses as $3:2$. C contributed Rs$1,50,000$ for purchase of materials. D paid wages amounting to Rs $80,000$. Other expenses were paid as:
C - Rs$5,000$D - Rs$15,000$
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?

• A. $30,000$
• B. $40,000$
• C. $20,000$
• D. $15,000$

Answer 1

The correct option is B $40,000$

Dr. Joint Venture A/c Cr.

Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
To Purchase of Materials by C	1,50,000	By Machine Taken Over - C	10,000
To Wages paid by D	80,000	By Bank A/c - Contract Value Recd.	3,00,000
To Other Expenses - (C + D)	20,000
To Machine Purchased - C	20,000
To Profit on Venture	40,000
	3,10,000		3,10,000