Question

Question

Answer 1

In the Books of X Joint Venture Account
Dr.						Cr.
Particulars			Amount Rs	Particulars	Amount Rs
Bank A/c:				Bank A/c (Insurance Claim)	7,500
Liquor		2,40,000		Y (Sales)	2,47,500
Freight and Insurance		7,500	2,47,500	Stock A/c (Stock taken by X)	18,750
Y:				Y (Stock)	18,750
Carriage and Clearing Charges		4,650
Godown Rent		1,800
Salesman’s Salary		1,350
Commission		14,850	22,650
Profit transferred to:
Profit & Loss A/c		14,900
Y		7,450	22,350
			2,92,500		2,92,500

Y Account
Dr.					Cr.
Particulars		Amount Rs	Particulars	Amount Rs
Joint Venture A/c		2,47,500	Joint Venture A/c (Carriage)	4,650
Joint Venture A/c (Stock)		18,750	Joint Venture A/c (Godown Rent)	1,800
			Joint Venture A/c (Salary)	1,350
			Joint Venture A/c (Cash)	14,850
			Joint Venture A/c (Share in Profit)	7,450
			Bank A/c (Balancing figure)	2,36,150
		2,66,250		2,66,250

Working Note:

WN 1: Valuation of Unsold Stock
$\begin{array}{l}\text{Valuation of Unsold Stock =}\frac{\text{Cost of goods purchased inc. expenditure × unsold goods}}{\text{Net Quantity}\left(\text{After Normal Loss}\right)}\\ \text{=}\frac{\left(\text{2,40,000 + 7,500}\right)\text{× 750}}{\text{5,000 -\hspace{0.17em}}5\text{0}}\text{= Rs. 37,500}\left(\text{Equally took over by X and Y}\right)\end{array}$