Q. 4 Urmila and Umesh decided to undertake
a venture jointly. They agreed to share profits & losses in the ratio of 3
: 2.
Urmila supplied from her own stock
goods worth `. 2,00,000 and
paid `. 4,950 for
freight and `. 1,200 for
Sundry Expenses.
Umesh
purchased goods of `. 1,95,000 for
the venture and paid `. 7,000 for
selling expenses. Umesh accepted a bill for 3 months of `. 95,000 drawn by Urmila as an advance. This bill
was discounted immediately by Urmila for `.92,000
and the amount of discount was charged to joint venture A/c. Umesh sold all the
goods for `. 5,00,000.
At
the end of the venture, the accounts were settled.
Give
journal entries for the above transactions, in the books of Urmila and Show
Joint Venture Account and Urmila’s Account, in the books of Umesh. (12)
In
the books of Urmila
Date
|
Particulars
|
LF
|
Debit Amt (Rs.)
|
Credit Amt.
(Rs.)
|
1.
|
Joint
Venture A/…………………………...Dr.
To Goods A/c
(Being
goods supplied)
|
2,00,000
|
2,00,000
|
|
2.
|
Joint
Venture A/c………………………….Dr.
To Cash / Bank A/c
(Being
paid for expenses)
|
6,150
|
6,150
|
|
3.
|
Joint
Venture A/c………………………….Dr.
To Umesh A/c
(Being
goods purchased)
|
1,95,000
|
1,95,000
|
|
4.
|
Joint
Venture A/c………………………….Dr.
To Umesh A/c
(Being
paid for expenses)
|
7,000
|
7,000
|
|
5.
|
Bills
Receivable A/c……………………….Dr.
To Umesh A/c
(Being
bill drawn and accepted due after 3 months as an advance)
|
95,000
|
95,000
|
|
6.
|
Bank
A/c…………………………………..Dr.
Discount
A/c………………………………Dr.
To Bills Receivable A/c
(Being
bill discounted)
|
92,000
3,000
|
95,000
|
|
7.
|
Joint
Venture A/c…………………………Dr.
To Discount A/c
(Being
discount treated as expense)
|
3,000
|
3,000
|
|
8.
|
Umesh
A/c…………………………………Dr.
To Joint Venture A/c
(Being
goods sold)
|
5,00,000
|
5,00,000
|
|
9.
|
Joint
Venture A/c………………………….Dr.
To Profit & Loss A/c
To Umesh A/c
(Being
profit on Joint venture transferred)
|
88,850
|
53,310
35,540
|
|
10.
|
Cash /
Bank A/c…………………………..Dr.
To Umesh A/c
(Being
account settled)
|
1,69,460
|
1,69,460
|
In
the books of Umesh
Joint
Venture Account
Particulars
|
Rs.
|
Rs.
|
Particulars
|
Rs.
|
Rs.
|
To Urmila
A/c (Goods)
|
2,00,000
|
By Cash/Bank
A/c
(Sales)
|
5,00,000
|
||
To Urmila
A/c
Freight
Sundry Exp.
|
4,950
1,200
|
6,150
|
|||
To Cash/Bank
A/c
(Purchase)
|
1,95,000
|
||||
To Cash/
Bank A/c
(Selling
Expenses)
|
7,000
|
||||
To Urmila
(discount)A/c
|
3,000
|
||||
To Profit
Profit & Loss A/c
Urmila A/c
|
35,540
53,310
|
88,850
|
|||
5,00,000
|
5,00,000
|
Urmila
A/c
Particulars
|
Rs.
|
Particulars
|
Rs.
|
To Bills
Payable A/c
|
95,000
|
By Joint
Venture A/c
|
2,00,000
|
By Joint
Venture A/c
By Joint
Venture A/c
|
6,150
3,000
|
||
To Cash /
Bank A/c
|
1,69,460
|
By Joint
Venture A/c
|
53,310
|
2,61,460
|
2,61,640
|
