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Byju's Answer

Standard XII

Accountancy

Issued at a Discount and Redeemed at Par

Ram Mohan e...

Question

Ram & Mohan entered into a joint venture to purchase and sell new year gifts. They agreed to share profits and losses equally. Ram purchased goods worth Rs.1,00,000 and spent Rs.6,000 in sending the good to Mohan. He also paid Rs.2,000 for insurance. Ram drew a bill of exchange upon Mohan for Rs.1,00,000 at 2 months. He got the bill discounted @ 18% p.a. Mohan spent Rs.3,000 on cartage, Rs.5,000 as rent and Rs.5,000 on advertisement. He sold all the gifts for Rs.2,00,000 after retaining gifts worth Rs.2,000 for his personal use. What will be the profit on joint venture?

Rs.78,000

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Rs.80,000

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Rs.81,000

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Rs.76,000

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Solution

The correct option is A Rs.78,000
Joint Venture Account
Particulars Rs Particulars Rs
To Ram purchased 100000 By Sales 200000
To Spent to Mohan 6000 By Goods taken over 2000
To Insurance 2000
To Discount on Bill 3000
To Cartage 3000
To Rent 5000
To Advertisement 5000
To Profit on Venture 78000
Ram-39000(1/2)
Mohan-39000(1/2)
Total 202000 Total 202000

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Q. A & B entered into a joint venture to purchase and sell crackers. Profits or losses were to be shared equally. A purchased cracker worth Rs.1,00,000 and incurred the following expenses in sending it to B: Forwarding charges Rs.6,000, Insurance charges Rs.5,000 and Rental Charges Rs.4,000. The whole crackers were disposed of by B for Rs.2,20,000. B incurred advertisement expenses Rs.20,000. What will be the profit on joint venture?

On 1st February, 2016, Ravi sold goods to Mohan for Rs. 18,000; Rs. 3,000 were paid by Mohan immediately and for the balance he accepted three months bill drawn upon him by Ravi. On the date of maturity of the bill Mohan requested Ravi to cancel the old bill and draw a new bill upon him for a period of 2 months. He further agreed to pay interest in cash to Ravi @ 12 % per annum. Ravi agreed to Mohan's request and cancelled the old bill and drew a new bill. The new bill was met on maturity by Mohan.
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Joint Venture Account
Particulars	Rs	Particulars	Rs
To Ram purchased	100000	By Sales	200000
To Spent to Mohan	6000	By Goods taken over	2000
To Insurance	2000
To Discount on Bill	3000
To Cartage	3000
To Rent	5000
To Advertisement	5000
To Profit on Venture	78000
Ram-39000(1/2)
Mohan-39000(1/2)
Total	202000	Total	202000