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X and Y entered into a joint venture to act as underwriters of a newly formed company which issued 30,000 shares   of ~ 10 each. The extent of underwriting was 80%. They opened a joint bank account by contributing ~ 35,000 each. Public subscribed for 22,000 shares and the underwriters duly discharged their obligations in […]

Gavaskar and Biswanath jointly underwrite and place on the market 50,000 shares ofBombay Machineries Ltd of ~ 10 each. It was agreed with the company that they would be allotted 2,000 shares as fully-paid towards their remuneration. Their profit sharing ratio is 3:2. Applications were received from the public only for 45,000 shares. Gavaskar paid

A and B enter into a joint venture to take a building contract for ~ 2,40,000. They provide the following information regarding the expenditure incurred by them :

X and Y entered into a joint venture for purchase and sale of jute. They agreed to share profits in the proportion of 2:1. The following transactions took place in between them: (i) On January 1, 2015, X purchased 1,400 bales of jute at ~ 55 per bale, the brokerage being ~ 2 per bale;

(a) What do you understand by a joint venture? (b) State its main features. Distinguish between Joint venture and consignment. Explain how joint venture accounts are kept when a complete set of double-entry books is separately maintained for this purpose. (a) What is a joint bank account? (b) How are entries regarding joint venture passed

On 1st January, 2015, Singh of Amritsar, a manufacturer of sports goods, sent a consignment of 100 cricket bats to Bose of Calcutta to be sold on a consignment basis at a commission of 20%. The commission is to cover the consignee’s expenses but not the freight charges of the goods to Calcutta. The cost

On 1st January, 2015 Menon sent goods to Gupta to be sold on consignment basis @ 5% commission. Goods costing ~ 6,00,000 were sent and ~ 50,000 expenses were incurred. Gupta has to incur ~ 20,000 expenses for landing and 75% of the goods were sold out for ~ 7,00,000. Gupta sent the amount due

A memorandum joint venture summarises – A assets and liabilities B expenses and incomes C receipts and payments D all transactions Recording of transactions in a separate set of book is made A. when the size of the business is small B. when double entry system cannot be followed C. for better financial control D.

(a) What do you understand by a joint venture? (b) State its main features. Distinguish between Joint venture and consignment. Explain how joint venture accounts are kept when a complete set of double-entry books is separately maintained for this purpose. (a) What is a joint bank account? (b) How are entries regarding joint venture passed

To make final settlement in a joint venture : A. joint bank account is closed first B. joint bank account and venturers’ accounts are closed C. joint venture is closed last D. joint venture account is closed first and the remaining account are closed simultaneously For determining profit / loss of the joint venture –