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Question

ISCE BOARD- Problem No 32 from ( Memorandum Method ) T. S. GREWAL’S- 12TH STD COMMERCE --A and B entered into a Joint Venture fo the purchase and sale of material auctioned by the government. A agreed to provide funds for the purchase of materials and B to devote his name. .Prepare Joint venture Account in the Books of A and B separately and Memorandum Joint Venture Account.

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Solution

Memorandum Joint Venture Account
Dr. Cr.
Particulars Amount
Rs
Particulars Amount
Rs
A: Material purchased 50,000 B: Goods sold 72,000
Interest on Capital 500 Goods Taken over 300
Discount 260 A : Goods Taken over 200
Carriage 250
Brokerage 100
Misc. Expenses 50
B: Commission 300
Insurance 200
Misc. Expenses 100
Profit transferred to:
A 10,370
B 10,370 20,740
(Balancing Figure) 72,500 72,500

In the books of A
Joint Venture with B Account
Dr. Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Cash A/c (Interest on Capital by A) 500 Bills Receivable A/c 20,000
Cash A/c (Materials by A) 50,000 Purchases A/c (Stock Taken Over) 200
Cash A/c (Discount by A) 260 Bank A/c (Final settlement)*
(Balancing Figure)
41,330
Cash A/c (Carriage by A) 250
Cash A/c (Brokerage by A) 100
Cash A/c (Misc.Exp. by A) 50
Profit and Loss A/c (Share of Profit)* 10,370
61,530 61,530



In the books of B
Joint Venture with A Account
Dr. Cr.
Particulars Amount
Rs
Particulars Amount
Rs
Bills Payable A/c 2,00,000 Cash A/c (Sales) 72,000
Cash A/c (Commission by B) 300 Purchases A/c (Goods Taken Over) 300
Cash A/c (Insurance by B) 200
Cash A/c (Misc. Exp. by B) 100
Profit and Loss A/c (Share of Profit)* 10,370
Bank A/c (Final settlement)*
(Balancing Figure)
41,330
72,300 72,300

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