RBSE Solutions Class 12 Accountancy Chapter 7 Joint Venture Accounts

 

Question 1. What is the name of trade structure of joint venture :
(a) Partnership
(b) Cooperative society
(c) Group of people
(d) Sole trader
Answer: (c) Group of people
In simple words: A joint venture brings together different people or companies to work on a specific project. It's like a group of people working together for a common goal.

🎯 Exam Tip: Remember that a joint venture is temporary and formed by a group, unlike a permanent partnership or sole proprietorship.

 

Question 2. The member who participate in joint venture is called :
(a) Manager
(b) Co-venturer
(c) Proprietor
(d) None of the options
Answer: (b) Co-venturer
In simple words: The people or companies involved in a joint venture are called co-venturers. They work together on the shared project.

🎯 Exam Tip: The term "co-venturer" specifically refers to parties in a joint venture, distinguishing them from partners, managers, or proprietors in other business structures.

 

Question 3. Joint venture account is an example of:
(a) Personal account
(b) Real account
(c) Nominal account
(d) None of the options
Answer: (c) Nominal account
In simple words: A joint venture account is like a temporary income and expense account. It helps to figure out the profit or loss from the joint project.

🎯 Exam Tip: Nominal accounts are used to record income, expenses, gains, and losses. The joint venture account is used to determine the profit or loss of the venture, making it a nominal account.

 

Question 4. Maximum number of members in a joint venture here
(a) Two
(b) Twenty
(c) Ten
(d) No limit
Answer: (d) No limit
In simple words: Unlike a partnership which has limits, there is no fixed upper limit on how many members can join a joint venture. This makes it very flexible.

🎯 Exam Tip: A key difference between a joint venture and a partnership is the absence of a legal limit on the number of co-venturers in a joint venture, which allows for greater flexibility in project scope.

 

Question 5. On discounting the bill from bank by a co-venturer such discount is debited to :
(a) Discount account
(b) Joint venture account
(c) Bank account
(d) Co-venturer account
Answer: (b) Joint venture account
In simple words: When a co-venturer gets a bill discounted from the bank, the discount amount is treated as an expense for the joint venture. This means it is recorded on the debit side of the joint venture account.

🎯 Exam Tip: All expenses related to the joint venture, including any discount incurred on bills, are debited to the Joint Venture Account to correctly calculate the project's profit or loss.

RBSE Class 12 Accountancy Chapter 7 Very Short Answer Questions

 

Question 2. State the maximum and minimum number of ventures in joint venture.
Answer: In a joint venture, the minimum number of ventures needed is two. There is no specific limit on the maximum number of members. This allows many people to join if needed.
In simple words: You need at least two people or companies for a joint venture, but there's no limit to how many can join.

🎯 Exam Tip: Clearly state both the minimum (two) and that there is no maximum limit, as this highlights the flexible nature of joint ventures.

 

Question 3. When it is appropriate to keep separate books in joint venture?
Answer: Keeping separate books for a joint venture is suitable when the co-venturers are located in the same place and the business venture is very large. This makes it easier to manage the accounts specific to that big project.
In simple words: Separate books are good if the co-venturers are nearby and the joint venture is a big business.

🎯 Exam Tip: Focus on the two key conditions: proximity of co-venturers and large scale of the venture, as these are the main reasons for maintaining separate books.

 

Question 4. In which ratio profit and loss of joint venture is distributed ?
Answer: The profit and loss from a joint venture are shared according to an agreed ratio. If the question does not mention an agreed ratio, then the profit and loss are distributed equally among the co-venturers. This ensures fairness in sharing outcomes.
In simple words: Profit and loss are shared based on what was agreed. If no agreement, they are shared equally.

🎯 Exam Tip: Always look for the agreed profit/loss sharing ratio first. If it's missing, default to equal distribution and mention this assumption in your answer.

 

Question 5. What is the nature of memorandum joint venture account ?
Answer: The memorandum joint venture account acts like a Trading and Profit & Loss Account. It helps determine the total profit or loss for the entire joint venture project. This account is usually not part of the main books of any co-venturer.
In simple words: It's like a temporary profit and loss statement for the joint venture to see how much money was made or lost.

🎯 Exam Tip: Comparing the memorandum joint venture account to a Trading and Profit & Loss Account clearly explains its purpose and nature in a concise way.

 

Question 6. When each co-venturer records his own transactions for the joint venture, which accounts will be opened by him? Give only name.
Answer: When each co-venturer records their own transactions for the joint venture, they will typically open the following accounts:

• Joint Venture with A/c
• Memorandum Joint Venture A/c

In simple words: Each person in the joint venture will keep track of their part using a "Joint Venture with..." account and a "Memorandum Joint Venture" account.

🎯 Exam Tip: Remember these two specific account names, as they are crucial for accounting in joint ventures when separate books are not maintained.

 

Question 8. Joint venture is appropriate for which type of organisation?
Answer: Joint ventures are suitable for many types of temporary projects. Examples include joining to sell goods (joint consignment), constructing buildings, bridges, or hotels, sharing the risk of underwriting shares or debentures, and even buying and selling land, buildings, or flats. It is a flexible structure for specific, often large-scale, undertakings.
In simple words: Joint ventures are good for specific, temporary projects like building things, selling goods together, or buying and selling property.

🎯 Exam Tip: When asked about suitable types, list a variety of concrete examples to show a broad understanding of joint venture applications.

 

Question 9. Which account is credited in joint venture for credit purchase?
Answer: For a credit purchase in a joint venture, the supplier's account is credited. This shows that the joint venture owes money to the supplier for the goods or services received.
In simple words: When you buy things on credit for the joint venture, the supplier's account is credited.

🎯 Exam Tip: Recall the basic accounting rule: "Credit the giver" or "Credit what goes out." In this case, the supplier is the 'giver' of credit.

 

Question 10. When separate books of joint venture is kept which types of accounts are opened? Given names.
Answer: When separate books are maintained for a joint venture, the following three types of accounts are typically opened:
1. Joint Venture Account
2. Joint Bank Account
3. Co-venturer's Capital/Personal Account
These accounts help track all financial activities related to the specific project.
In simple words: If a joint venture has its own set of books, it will open accounts for the joint venture itself, a joint bank account, and personal accounts for each co-venturer.

🎯 Exam Tip: Clearly list these three accounts as they are fundamental to accounting when a separate set of books is maintained for a joint venture.

RBSE Class 12 Accountancy Chapter 7 Short Answer Questions

 

Question 1. What is the joint venture?
Answer: A joint venture is a temporary business arrangement formed by two or more parties to work on a specific project. It is usually defined by shared ownership, returns, and risks, along with shared management. This setup is often used for a limited purpose or for a short time.
In simple words: A joint venture is when two or more people or companies team up for a specific project, sharing everything like ownership, profits, and risks.

🎯 Exam Tip: Emphasize the temporary nature and specific purpose of a joint venture, as these are its defining characteristics.

 

Question 2. What is the memorandum joint venture account? Why is it made?
Answer: The memorandum joint venture account is a nominal account prepared to find out the profit or loss of the entire joint venture project. It is generally not maintained in the official books of accounts of any co-venturer but is used as a working paper. It's made to consolidate all transactions and expenses from the joint venture to get an overall financial picture. This helps the co-venturers understand the total outcome of their shared project.
In simple words: It's a rough account used to figure out the total profit or loss for the whole joint venture. It's like a scratchpad to sum everything up.

🎯 Exam Tip: Highlight that it's a "nominal account" and its primary purpose is "profit/loss ascertainment" for the *entire* venture, not just individual contributions.

 

Question 3. What is the difference between joint venture account and consignment account?
Answer: Here are the differences between a Joint Venture and Consignment accounts:

In simple words: A joint venture is like a temporary partnership where everyone shares ownership and profit for a specific task. Consignment is when one person (consignor) sends goods to another (consignee) to sell on their behalf, and the consignor keeps ownership and profit.

🎯 Exam Tip: Focus on the core differences: "relationship" (partners vs. principal/agent) and "ownership" (shared vs. consignor only) to clearly distinguish between the two concepts.

 

Question 5. What are the characteristics of joint venture?
Answer: Key characteristics of a joint venture business include:

• It is a short-duration partnership for a special purpose; the parties involved are called co-venturers.
• Co-venturers can contribute funds or supply goods from their existing businesses to run the venture.
• Co-venturers share the profit or loss of the venture according to an agreed ratio, similar to a partnership.
• Usually, the profit or loss of the venture is calculated once the entire project is finished.
• The "going concern" assumption, which means a business will continue indefinitely, is generally not suitable for joint venture accounting because they are temporary.

There is no difficulty in separating capital and revenue expenses. Assets like plant and machinery, when used in the venture, are first recorded at cost. Once the venture is completed, these assets are revalued and treated as revenue for the venture. This means the accounting approach for measuring venture profit is quite distinct.
In simple words: Joint ventures are temporary, share profits/losses, are for specific goals, and usually end when the goal is met. They handle assets differently because they are not meant to last forever.

🎯 Exam Tip: When listing characteristics, ensure you highlight the temporary nature, shared profit/loss, and how accounting for assets differs due to the venture's limited lifespan.

RBSE Class 12 Accountancy Chapter 7 Essay Type Questions

 

Question 1. What is the meaning of the joint venture? Write the differences between joint venture and partnership?
Answer:
Meaning of Joint Venture: A joint venture is a short-term business arrangement, often focused on a single project or specific transactions, like buying and selling goods. It involves two or more people working together for a limited purpose, without necessarily forming a permanent firm. Co-venturers might contribute goods from their existing businesses. This temporary partnership automatically ends when the specific project it was formed for is completed.

Difference between Joint Venture and Partnership:

In simple words: A joint venture is a temporary team-up for one project, ending when the project finishes, and doesn't need a formal name or act. A partnership is a longer-term business, needs a name, follows a specific law, and has its own set of books.

🎯 Exam Tip: When defining "joint venture," always mention its "temporary" and "specific purpose" aspects. For differences, highlight the legal framework, duration, and accounting requirements for each.

 

Question 2. Explain with example, methods of accounting for joint venture?
Answer: There are different ways to keep accounts for a joint venture, depending on how large the project is and where the co-venturers are located. Here are the main methods:

Maintenance of Joint Venture Accounts

(1) When Separate Set of Books are Maintained:
This method is used when the joint venture is large enough for co-venturers to keep a dedicated set of books. All transactions are recorded separately from their regular business activities. The following accounts are typically opened:
1. Joint Bank Account
2. Joint Venture Account
3. Personal accounts of the co-venturers

Example: Mahesh and Suresh of Jaipur started a joint venture to develop land. They opened a joint bank account by depositing Rs 5,00,000 and Rs 3,00,000 on January 1, 2017. They agreed to share profits and losses in a 5:3 ratio.

They bought land for Rs 6,00,000 and paid Rs 65,000 for its registration. Development expenses were Rs 90,000. The land was divided into 40 plots.

25 plots were sold at Rs 35,000 each, and 7 plots at Rs 31,000 each. Brokerage paid was Rs 40,000. The remaining plots (8 plots) were taken by both co-venturers equally at Rs 22,000 each.

Solution:

(2) When Separate Books are Not maintained for Joint Venture:
This method is used when co-venturers are not in the same location or the venture is not very large. In such cases, co-venturers record joint venture transactions in their own books. This often involves one of the following methods:

1. Each Venturer Records Only Their Own Transactions:
In this method, each co-venturer opens a "Joint Venture with..." account in their own books. This account tracks individual contributions and liabilities related to the co-venturer. Payments for purchases and expenses are debited, while sales proceeds and other incomes are credited. At the end, co-venturers exchange transaction details, and a memorandum joint venture account is prepared to calculate the overall profit or loss. This memorandum account is a nominal account.

Example: Bharat of Delhi and Anil of Bhilwara entered a joint venture to buy and sell old machines, agreeing to share profits and losses equally.

Anil sent Rs 40,000 to Bharat. Bharat bought old machines for Rs 45,000, paid 2% purchase commission, Rs 10,000 for repairs, and Rs 600 for other expenses. Then, machines were sent to Bhilwara.

Anil received the machinery, paying Rs 2,000 for freight and Rs 1,000 for octroi. He sold some machines for Rs 85,000 and kept one for himself at an agreed value of Rs 7,200. Anil's other expenses included godown rent of Rs 400 and advertisement and selling expenses of Rs 1,800. Final settlement was made.

Solution:



2. Each Co-venturer Records All the Transactions:
In this method, each co-venturer records every transaction related to the joint venture, including those made by other co-venturers, in their own books. For this, they open a joint venture account (which is a nominal account to find profit/loss) and the other co-venturer's personal account. Co-venturers regularly share their transaction details. At the end, co-venturers' accounts are settled.

Example: Ravi and Kavi enter a joint venture for a specific project. They agree to share profits and losses.

Solution:




In simple words: The first method means having a separate bank and venture account for the joint project. The second method means each person involved records all transactions, even those done by others, in their own books using specific accounts to track everything.

🎯 Exam Tip: When explaining methods, clearly distinguish between maintaining separate books for the venture and each co-venturer recording transactions in their own books. For each method, list the key accounts involved and provide a simple example to illustrate the practical application.

 

Question 3. Ram and Shyam doing business separately as a building contractors. They undertake jointly to construct a building.
Shyam gave material from his stock Rs 8,000, Architect's fees paid by Ram Rs 4,000. Accounts are settled. The contract was completed and contract price was received. Ram took all the shares for Rs 32,000 and Shyam took remaining stock for Rs 6,000. Open the necessary accounts in the books of joint venture.
Answer: Here are the necessary accounts in the books of the joint venture:

In simple words: These tables show how money was put in, taken out, and how profits or losses were shared between Ram and Shyam for their building project. Each table tracks the financial movements from their separate perspectives.

🎯 Exam Tip: When preparing accounts for a joint venture, ensure all contributions (cash, materials), expenses, sales, and profits/losses are correctly allocated to the Joint Venture Account and the individual co-venturers' accounts.

 

Question 4. Contractor Kapil and Engineer Bharat started joint venture for a Urban Development Project. The opened both Kapil and Bharat equally. Open necessary accounts in the books of joint venture.
Answer: Here are the necessary accounts in the books of the joint venture:

In simple words: These tables show the financial details for Kapil and Bharat's urban development project. They record all purchases, sales, expenses, and how the profit or loss was shared between them.

🎯 Exam Tip: For problems involving co-venturers and multiple accounts, ensure that each co-venturer's contributions and individual transactions are correctly reflected in their respective accounts, alongside the main Joint Venture and Joint Bank accounts.

 

Question 5. (This is a continuation of Question 2's example, specific to 'Journal Entries' for a different scenario.) A, B and C entered into a joint venture sharing profit equally. They opened a separate bank account in State Bank on 1st January, 2017. They deposited Rs 20,000, Rs 40,000 and Rs 90,000 respectively. It is also decided to allow interest on such deposits @ 3% p.a., goods purchased from D worth Rs 1,50,000. Stock took from A worth Rs 20,000. They paid of D by cheque and paid for carriage and other expenses Rs 7,600. A sold some goods for Rs 80,000 in cash and remaining goods sold to E at credit for Rs 1,60,000. E accepted the bill for same amount. It was discounted from bank for Rs 1,57,000. Initial capital of co-venturers returned on 30th June, 2017. It is decided to allow the commission on sales @ 5% to A for his services.
Answer: Here are the Journal Entries for this scenario:

In simple words: These journal entries record all the financial steps for the joint venture, from putting in money and buying goods to selling them and finally sharing the profits. It helps keep a clear track of all transactions from start to finish.

🎯 Exam Tip: When preparing journal entries, ensure that each transaction is debited and credited to the correct accounts and that the narration clearly explains the nature of the entry.

 

Question 2. A, B and C entered into a joint venture sharing profit equally. They opened a separate bank account in State Bank on 1st January, 2017. They deposited Rs 20,000, Rs 40,000 and Rs 90,000 respectively. It is also decided to allow interest on such deposits @ 3% p.a., goods purchased from D worth Rs 1,50,000. Stock took from A worth Rs 20,000. They paid of D by cheque and paid for carriage and other expenses Rs 7,600. A sold some goods for Rs 80,000 in cash and remaining goods sold to E at credit for Rs 1,60,000. E accepted the bill for same amount. It was discounted from bank for Rs 1,57,000. Initial capital of co-venturers returned on 30th June, 2017. It is decided to allow the commission on sales @ 5% to A for his services. Prepare the necessary journal entries and ledger accounts for this joint venture.
Answer: The journal entries and ledger accounts for the joint venture are prepared as follows, reflecting all transactions from capital contributions, purchases, expenses, sales, and profit distribution, as well as the final settlement between A, B, and C.

Joint Bank Account

A's Account

B's Account

C's Account

In simple words: This problem shows how to record all money transactions for a short-term business project done together by A, B, and C. It includes their initial investments, costs, sales, and how they split profits, making sure all records are clear.

🎯 Exam Tip: When preparing journal entries for joint ventures, always remember to differentiate between transactions involving the joint bank account and those directly involving co-venturers' personal accounts.

 

Question 3. Ram and Shyam are building contractors. They jointly undertook to construct a building. Shyam provided materials worth Rs 8,000 from his stock. Ram paid architect's fees of Rs 4,000. Accounts were settled after the contract was completed and the contract price was received. Ram took all the shares for Rs 32,000 and Shyam took the remaining stock for Rs 6,000. Open the necessary accounts in the books of the joint venture.
Answer: The required accounts for the joint venture between Ram and Shyam are prepared below, detailing their contributions, expenses, and final settlements.

Joint Venture Account

Joint Bank Account

Ram's Account

Shyam's Account

In simple words: This solution shows the money records for a building project done by Ram and Shyam. It lists what each person put in, the costs, and how the final money was shared or stock was taken.

🎯 Exam Tip: Remember to carefully record all contributions (cash, materials) and expenses for each co-venturer to ensure accurate profit/loss calculation and final settlement.

 

Question 4. Contractor Kapil and Engineer Bharat started a joint venture for an Urban Development Project. They both contributed equally. Open the necessary accounts in the books of the joint venture.
Answer: The necessary accounts for the joint venture between Kapil and Bharat are opened below, showing all transactions related to the urban development project.

Joint Venture Account

Joint Bank Account

Kapil's Account

Bharat's Account

In simple words: This solution shows how Kapil and Bharat kept records for their city development project. It details their shared bank, project costs, and how profits or losses were divided, including what each person took.

🎯 Exam Tip: For joint venture accounting, ensure that each co-venturer's contributions (cash, assets, expenses) and share of profit/loss are accurately reflected in their individual capital accounts.

 

3,75,000 and 'C' Rs 2,00,000. The transactions of joint venture were as follows: Purchases of material Rs 12,00,000, Wages paid Rs 9,75,000, Purchase of plant Rs 1,20,000, Architect's fees paid by 'A' Rs 35,000, Concrete mixer by B Rs 1,25,000 and a Motor truck is given by C worth Rs 1,00,000. A took material for Rs 70,000 and B took concrete mixer for Rs 60,000 after construction work is completed. Plant sold for Rs 30,000, contract price received and A took debentures 20% less than cost price. Joint venture is completed. Prepare necessary accounts in the books of joint venture.

Question 5. Prepare the necessary accounts in the books of the joint venture for the above transactions.
Answer: The necessary accounts for the joint venture are prepared below, summarizing all the transactions including material purchases, wages, plant costs, fees, sales, and the distribution of profit or loss.

Joint Venture A/c

Joint Bank Account

B's Account

C's Account

In simple words: This solution shows the money records for a large construction project with several partners (A, B, C). It details all spending, money earned, and how each partner's share of profits or assets was handled at the end.

🎯 Exam Tip: When dealing with assets taken over by co-venturers, remember to record them at their agreed-upon value in the joint venture account and debit the respective co-venturer's personal account.

 

Question 6. Payan and Pratush entered into a joint venture, sharing profit and losses equally. Payan sent goods worth Rs 3,00,000 and paid carriage & freight Rs 10,000 and other expenses Rs 4,000. Pratush sent goods worth Rs 2,40,000 and paid consignment expenses and sundry expenses Rs 15,000 and godown rent Rs 5,000. Goods were to be sold by Payan. They decided 2% commission on sales. Payan sold all the goods for Rs 16,84,000. Prepare Memorandum Joint Venture Account and Joint Venture with Payan Account in the books of Pratush and Joint Venture with Pratush Account in the books of Payan. Final payment is made through bank draft.
Answer: The Memorandum Joint Venture Account and specific Joint Venture accounts for Payan and Pratush are prepared below, showing their contributions, expenses, sales, commission, and profit distribution.

Memorandum Joint Venture A/c

In the books of Payan Joint venture with Pratush A/c

In the Books of Pratush Joint Venture With Payan A/c

In simple words: This solution shows the accounting for a joint selling project between Payan and Pratush. It includes their contributions, all expenses, the sales made, commission earned, and how their profits were calculated and paid out.

🎯 Exam Tip: When preparing accounts for co-venturers, ensure that each party's individual expenses and contributions are separately recorded, alongside their share of the total venture profit or loss.

 

Question 8. Mahendra and Lalit agreed to purchase and sell T.V. sets, sharing profit or loss equally. Mahendra sent a bank draft of Rs 2,50,000 to Lalit. Lalit purchased 20 T.V. sets at Rs 20,000 each and paid freight of Rs 2,000. Mahendra received all sets and sold them. Mahendra sent a draft for the remaining balance to Lalit. In the books of Mahendra, prepare Joint Venture with Lalit's Account and Memorandum Joint Venture Account.
Answer: The required accounts, including the Memorandum Joint Venture Account and Joint Venture with Lalit's Account, are prepared in Mahendra's books to track all transactions and profit/loss distribution.

Memorandum Joint Venture Account

In the Books of Mahendra Joint Venture with Lalit A/c

In simple words: This shows Mahendra's records for a TV selling project with Lalit. It tracks money sent, purchases, sales, and Mahendra's share of the profit, ending with the final money transfer to Lalit.

🎯 Exam Tip: When preparing accounts in the books of a co-venturer, remember to record transactions from their perspective, especially cash sent to or received from other co-venturers, and their share of profit/loss.

 

Question 9. Shalu and Bunti entered in joint venture to purchase and sale of imported goods. Shalu took the responsibility for purchase and Bunti for sale. It was decided that Shalu will get interest @ 12% p.a. on the purchase price of goods and Bunti will get salary of Rs 500 per month. Shalu drew a bill of Rs 20,000 on Bunti for 3 months which was accepted by Bunti. Shalu imported goods worth Rs 90,000 and sent to Bunti. Shalu paid carriage expenses Rs 4,000 in dispatching goods. Bunti paid Rs 1,600 freight and Rs 1,400 for selling expenses. Bunti sold all the goods for Rs 1,30,000. The whole process completed in three months. Prepare Memorandum Joint Venture Account and Joint Venture with Bunti Account in the books of Shalu and Joint Venture with Shalu Account in the books of Bunti.
Answer: The Memorandum Joint Venture Account, Joint Venture with Bunti Account in Shalu's books, and Joint Venture with Shalu Account in Bunti's books are prepared below, detailing all financial activities and the final profit distribution.

Memorandum Joint Venture Account

In the Books of Shalu Joint Venture with Bunti Account

In the Books of Bunti Joint Venture with Shalu A/c

In simple words: This solution shows how Shalu and Bunti tracked their imported goods business. It includes Shalu's purchasing and expenses, Bunti's selling activities, their agreed-upon interest and salary, and how the final profit was divided between them.

🎯 Exam Tip: When co-venturers have specific roles (like purchase vs. sale) and additional remuneration (interest on capital, salary, commission), make sure to account for these in the Joint Venture account before distributing the final profit or loss.

 

Question 10. Ravi and Vimal entered into a joint venture for the purchase and sale of blankets. Ravi will purchase goods. On February 1, 2017, 300 blankets were bought at Rs 90 each. On July 1, 2017, 1000 blankets were bought at Rs 100 each. On October 1, 2017, 500 blankets were bought at Rs 84 each. Vimal sent Ravi Rs 20,000 on March 1, 2017, and Rs 56,000 on August 1, 2017. The remaining blankets were taken by Vimal at cost plus 25%. On October 1, 2017, final settlement was made. Assume that each party records all transactions. Prepare necessary accounts in the books of both parties.
Answer:

In the Books of Ravi
Joint Venture Account

Vimal's Account

Ravi's Account

Working Notes:
(i) Calculation of Interest Payable to Ravi:
Invested Amount \( = 1,20,000 + 4,000 = 1,24,000 \)
Interest \( = 1,24,000 \times \frac{5}{100} \times \frac{9}{12} = 4,650 \)
(ii) Interest Receivable from Ravi:
(i) \( 20,000 \times \frac{5}{100} \times \frac{7}{12} = 583 \)
(ii) \( 56,000 \times \frac{5}{100} \times \frac{2}{12} = 467 \)
Total \( = 1050 \)
Total Interest Payable \( = 4,650 - 1,050 = 3,600 \)
(iii) Cost of Remaining Blanket :
Cost Price \( = 60 \times 200 = 12,000 \)
\( + 25\% = 3,000 \)
Total \( = 15,000 \)
In simple words: This solution shows how to keep separate accounting records for a joint venture between Ravi and Vimal. It covers all the purchases, sales, expenses, and profits related to their blanket business. The working notes detail how interest and the cost of remaining items are calculated.

🎯 Exam Tip: Always make sure to calculate interest correctly for both parties, accounting for the duration and amount of funds invested or received. Pay attention to how unsold stock is valued.

 

Question 11. Sachin and Joni entered into a joint venture for the purchase and sale of goods. They share profit and loss. The goods were sold for Rs 17,25,000. Remaining goods were kept by himself for Rs 2,05,000. Prepare necessary ledger accounts in the books of both parties, assuming that all transactions are entered by both parties.
Answer:

Joni's Account

Sachin's Account

In simple words: This problem involves preparing ledger accounts for Sachin and Joni's joint venture. It shows how sales, goods taken by a partner, and profit shares are recorded to complete the final settlement between them.

🎯 Exam Tip: When preparing ledger accounts for a joint venture where all transactions are recorded by both parties, ensure that all corresponding entries between the Joint Venture Account and the individual partners' accounts are accurately matched and balanced.