Question

ISCE BOARD- Problem No 32 from ( Memorandum Method ) T. S. GREWAL’S- 12^TH 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.

Answer 1

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