The following is the Receipts and Payments Account of the Calcutta Club for the year ending 31.12.2014: A building costing one lakh of rupees was purchased during the last year and ~ 88,000 was paid for it. Subscriptions outstanding for 2014——————————————————- ~ 1,100; Interest accrued on bank deposits but not received ~ 200; and Salaries […]

A joint venture is undertaken when the A. respective advantages of the parties are pooled together B. termination is uncertain C. ascertainment of income is simple D. accounting concepts are not applicable

In joint venture, discounting charges of a bill of exchange is A. reated as financial expenses and charged to profit and loss account B. treated as joint venture expense and charged to joint venture account C. treated as personal expenses of the drawee D. treated as personal expenses of the drawer Murari and Mihir entered

Arbind of Calcutta and Brown of Bombay entered into a joint venture in regard to a consignment of radio sets to be sent from London for sale in this country and they agreed to share profits equally. On 15th May, 2015, Brown purchased 1,000 sets at ~ 25,000 per hundred subject to 30% trade discount

Aswin of Madras and Gupta of Delhi entered into a joint venture on 1.4.2014 for the purpose of buying second-hand cars for reconditioning and selling them as airconditioned diesel cars. Aswin agreed to buy second-hand cars and recondition them and fit diesel engines. Gupta agreed to fix airconditioners and sell them at Delhi. They agreed

Record the following transactions in the Bills Receivable and Bills Payable Books of a trader : 2015 Jan. 1 Received from Hari Kumar an acceptance of 2 months for ~ 1,000. 5 Our acceptance to Ram Prasad at 3 months for ~ 4,000. 15 Received from Benigopal an acceptance for 4 months for ~ 2,000.

A sells goods to B for ~ 1,000 and draws a bill on him for the same amount for 3 months. Before the due date, B requests A to cancel the bill, to accept ~ 300 as part payment and to draw a fresh bill on him for ~ 720 for a further period of

Shyam sold goods to Ram for ~ 20,000 on 1.1.2015. On the same date Shyam drew upon Ram a bill for the amount of bill at 2 months and Ram accepted the same. On 4th January 2015, Shyam discounted the bill at his bank @ 12% p.a. On the due date Ram told Shyam that

A bought goods from B on 15th January, 2015 for ~ 25,000 for which he accepted a bill for 3 months drawn on him for ~ 20,000 and paid ~ 5,000 by cheque. On 21.1.2015 B discounted the bill @ 15%. p.a. A, being unable to meet the bill at maturity, requested B to accept

On 1.1.2015, A sells goods to B for ~ 10,000 and draws a bill on him for the same amount for 3 months. B accepts the bill and returns it to A. One month before the due date, B requests A to cancel the bill. Instead, he wants to pay ~ 3,000 immediately as part