Date | Particulars | Lf | Debit (Rs.) | Credit (Rs.) |
? 1. | Joint Bank A/c ………… Dr. To x's A/c To y's A/c To z's A/c [Being the initial contribution is made] | | 75000 | 25000 25000 25000 |
2. | Joint venture a/c ………… Dr. To Joint bank a/c [Being 5000 sq. m. of land @ Rs. 10 per square meter were purchased] | | 50000 | 5000 |
3. | Joint venture A/c ……… Dr. To Joint Bank A/c [Being the plan prepared & other expenses paid] | | 5500 | 5500 |
4. | Joint Bank A/c ……… Dr. To Joint venture A/c [Being 5 plots of 500 sq. m. each sold @ Rs. 15 per square meter] | | 37500 | 37500 |
5. | Joint Bank A/c ………… Dr. To Joint venture A/c [Being 3 plots of 500 sq. m. each sold @ Rs. 14 per sq. m.] | | 21000 | 21000 |
6. | Joint venture A/c ……… Dr. To x's A/c To Y's a/c To Z's A/c [Being the profit made on Joint venture] | | 3000 | 1000 1000 1000 |
7. | X's a/c ……… Dr.. Y's A/c ……… Dr. Z's A/c ………Dr. To Joint Bank A/c [Being the final settlement is made] | | 26000 26000 26000 | 78000 |
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Joint venture X,Y and Z entered into a Joint Venture to sell a certain plot of land.
X,Y and Z entered into a Joint Venture to sell a certain plot of land. They contributed Rs. 25,000 each. They purchased land of 5,000 sq. m. at Rs. 10 per sq. m. 1/5th of the land was left over for public roads and the balance was divided into 8 plots of equal size. A plan was got prepared for Rs. 2,000 and other expenses were Rs. 3,500. 5 plots were sold @ Rs, 15 per sq. m. and 3 plots were sold @ Rs. 14 per sq. m. Prepare joint venture A/c Joint Bank A/c and Co – Venturer’s A/c. Pass journal entries.
Solution:
Journal Entries in the Books of Joint venture
Joint venture X,Y and Z entered into a Joint Venture to sell a certain plot of land.
X,Y and Z entered into a Joint Venture to sell a
certain plot of land. They contributed Rs. 25,000 each. They purchased land of
5,000 sq. m. at Rs. 10 per sq. m. 1/5th of the land was left over
for public roads and the balance was divided into 8 plots of equal size. A plan
was got prepared for Rs. 2,000 and other expenses were Rs. 3,500. 5 plots were
sold @ Rs, 15 per sq. m. and 3 plots were sold @ Rs. 14 per sq. m. Prepare
joint venture A/c Joint Bank A/c and Co – Venturer’s A/c. Pass journal entries.
Solution:
Journal Entries in the Books of Joint venture
Date
|
Particulars
|
Lf
|
Debit (Rs.)
|
Credit (Rs.)
|
? 1.
|
Joint Bank A/c ………… Dr.
To x's A/c
To y's A/c
To z's A/c
[Being the initial contribution is made]
|
|
75000
|
25000
25000
25000
|
2.
|
Joint venture a/c ………… Dr.
To Joint bank a/c
[Being 5000 sq. m. of land @ Rs. 10 per square meter were purchased]
|
|
50000
|
5000
|
3.
|
Joint venture A/c ……… Dr.
To Joint Bank A/c
[Being the plan prepared & other expenses paid]
|
|
5500
|
5500
|
4.
|
Joint Bank A/c ……… Dr.
To Joint venture A/c
[Being 5 plots of 500 sq. m. each sold @ Rs. 15 per square meter]
|
|
37500
|
37500
|
5.
|
Joint Bank A/c ………… Dr.
To Joint venture A/c
[Being 3 plots of 500 sq. m. each sold @ Rs. 14 per sq. m.]
|
|
21000
|
21000
|
6.
|
Joint venture A/c ……… Dr.
To x's A/c
To Y's a/c
To Z's A/c
[Being the profit made on Joint venture]
|
|
3000
|
1000
1000
1000
|
7.
|
X's a/c ……… Dr..
Y's A/c ……… Dr.
Z's A/c ………Dr.
To Joint Bank A/c
[Being the final settlement is made]
|
|
26000
26000
26000
|
78000
|
Joint venture Ram and Rajiv entered into a Joint venture to construct a conference hall
Ram and Rajiv entered into a Joint venture to construct a conference hall at a contract price of Rs. 3,00,000. Ram contributed Rs. 1,00,000 and Rajiv contributed Rs. 1,50,000. Ram brought in material worth Rs. 2,000 and Rajiv Paid transportation charges worth Rs. 6,000 Plant was purchased for Rs. 50,000 and material worth Rs. 2,00,000 were also purchased. On completion, plant was sold for Rs. 20,000. Due to certain defect, one bill of Rs. 20,000 was not recovered and the balance was received in cash. Venturers share profits in the ratio of their initial contributions. Prepare Joint Venture A/c, Joint Bank A/c and Co – venturer’s A/c and pass Journal entries.
Solution:
Journal entries in the books of Joint venture
Date | Particulars | Lf | Debit (Rs.) | Credit (Rs.) |
? 1. | Joint Bank A/c ……… Dr. To Ram's A/c To Rajiv's A/c [Being the initial contribution is made] | | 250000 | 100000 150000 |
2. | Joint venture A/c ……… Dr. To Ram's A/c To Rajiv's A/c [Being the material purchased and transportation charges paid] | | 8000 | 2000 6000 |
3. | Joint venture A/c …………. Dr. To Joint Bank A/c [Being the materials purchased and plant purchased] | | 250000 | 250000 |
4. | Joint Bank A/c ……… Dr. To Joint venture A/c [Being the plant was sold] | | 20000 | 20000 |
5. | Joint Bank A/c ……… Dr. To Joint venture A/c [Being the contract price received after the deduction of Rs. 20000] | | 280000 | 280000 |
6. | Joint venture A/c ……… Dr. To Ram's A/c To Rajiv's A/c [Being the profit made on joint venture] | | 42000 | 14800 25200 |
7. | Ram's A/c ………… Dr. Rajiv's A/c ………… Dr. To Joint Bank A/c [Being the final settlement is made] | | 118800 181200 | 297000 |
Joint venture Ram and Rajiv entered into a Joint venture to construct a conference hall
Ram and Rajiv entered into a Joint venture to
construct a conference hall at a contract price of Rs. 3,00,000. Ram
contributed Rs. 1,00,000 and Rajiv contributed Rs. 1,50,000. Ram brought in
material worth Rs. 2,000 and Rajiv Paid transportation charges worth Rs. 6,000
Plant was purchased for Rs. 50,000 and material worth Rs. 2,00,000 were also
purchased. On completion, plant was sold for Rs. 20,000. Due to certain defect,
one bill of Rs. 20,000 was not recovered and the balance was received in cash.
Venturers share profits in the ratio of their initial contributions. Prepare
Joint Venture A/c, Joint Bank A/c and Co – venturer’s A/c and pass Journal
entries.
Solution:
Journal entries in the books of Joint venture
Date
|
Particulars
|
Lf
|
Debit (Rs.)
|
Credit (Rs.)
|
? 1.
|
Joint Bank A/c ……… Dr.
To Ram's A/c
To Rajiv's A/c
[Being the initial contribution is made]
|
|
250000
|
100000
150000
|
2.
|
Joint venture A/c ……… Dr.
To Ram's A/c
To Rajiv's A/c
[Being the material purchased and transportation charges paid]
|
|
8000
|
2000
6000
|
3.
|
Joint venture A/c …………. Dr.
To Joint Bank A/c
[Being the materials purchased and plant purchased]
|
|
250000
|
250000
|
4.
|
Joint Bank A/c ……… Dr.
To Joint venture A/c
[Being the plant was sold]
|
|
20000
|
20000
|
5.
|
Joint Bank A/c ……… Dr.
To Joint venture A/c
[Being the contract price received after the deduction of Rs. 20000]
|
|
280000
|
280000
|
6.
|
Joint venture A/c ……… Dr.
To Ram's A/c
To Rajiv's A/c
[Being the profit made on joint venture]
|
|
42000
|
14800
25200
|
7.
|
Ram's A/c ………… Dr.
Rajiv's A/c ………… Dr.
To Joint Bank A/c
[Being the final settlement is made]
|
|
118800
181200
|
297000
|
joint venture Raghu and Ramesh entered into a joint venture
Raghu and Ramesh entered into a joint venture to produce an advertisement film for Bharati Traders, at a contract price of 40,000. Raghu contributed Rs. 10, 000 and Ramesh Rs. 20,000 and opened a joint account in the bank with these contributions. Raghu purchases from his own funds raw film for Rs. 8, 000 and a Camera for Rs. 7,000 for joint venture. They Paid from the Joint Bank Account: Artist’s fees Rs. 18, 000, Hire of sets Rs. 2,000 and technician Charges RS. 10,000. The firm was completed but due to certain defects in the firm, the contract Price was reduced by 10% the amount being received by cheque from Bharati Traders. At the end of venture, the camera was sold for Rs. 5,000 and Ramesh took over the unused film for Rs. 400. Raghu and Ramesh shared profit and losses in the proportion of 1:2 and settled account of the venture. Prepare the Joint venture Account the Joint Bank account and the accounts of the Co – ventures.
Solution:
Journal entries in the books of Joint venture
Date | Particulars | Lf | Debit (Rs.) | Credit (Rs.) |
? 1. | Joint Bank A/c ………… Dr. To Raghu's A/c To Ramesh's A/c [Being the initial contribution is made] | | 30000 | 10000 20000 |
2. | Joint venture A/c ……… Dr. To Raghu's A/c [Being the raw film and camera purchased] | | 15000 | 15000 |
3. | Joint venture A/c ………… Dr. To Joint Bank A/c [Being the artists fees, hire of sets and technician charges paid] | | 30,000 | 30000 |
4. | Joint Bank A/c ………… Dr. To Joint venture A/c [Being the contract price received after a deduction of 10%] | | 36,000 | 36,000 |
5. | Joint Bank A/c ………… Dr. To Joint venture A/c [Being the camera was sold] | | 5000 | 5000 |
6. | Ramesh's A/c ……… Dr. To Joint venture A/c [Being the unused film was taken over] | | 400 | 400 |
7. | Raghu's A/c ………… Dr. Ramesh's A/c ……… Dr. To Joint venture A/c [Being loss made on joint venture] | | 1200 2400 | 3600 |
8. | Raghu's A/c ………… Dr. Ramesh's A/c …… Dr. To Joint Bank A/c [Being the final settlement is made] | | 23800 17200 | 41000 |
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