Test: Joint Ventures - 3 - CA Foundation MCQ

Which of the following statement is true:

For opening Joint Bank account, in case of separate sets of books:

For purchase of plant from Joint Bank Account, in case separate sets of books are maintained, the correct journal entry will be:

For material supplied from own stock by any of the venturer, the correct journal entry will be: (In case of separate sets of books)

A and B enter into a joint venture to underwrite the shares of K Ltd. K Ltd make an equity issue of 100000 equity shares of Rs 10 each. 80% of the issue are subscribed by the party.The profit sharing ratio between A and B is 3:2. The balance shares not subscribed by the public, purchased by A and B in profit sharing ratio. How many shares to be purchased by A.

A and B enter into a joint venture to underwrite shares of K Ltd. K Ltd make an equity issue of 200000 equity shares. 80% of the shares underwritten by the venturer. 160000 shares are subscribed by the public. How many shares are to be subscribed by the venturer?

A and B purchased a piece of land for Rs 20,000 and sold it for Rs 60,000 in 2005. Originally A had contributed Rs 12000 and B Rs 8000. What will be the profit on venture?

A and B enter into a joint venture sharing profit and losses in the ratio 2:1. A purchased goods costing Rs 200,000. B sold the goods for Rs 250,000. A is entitled to get 1% commission on purchase and B is entitled to get 5% commission on sales. The profit on venture will be:

P and Q enter into a Joint Venture sharing profits and losses in the ratio 3:2. P purchased goods costing Rs 200,000. Other expenses of P Rs 10000. Q sold the goods for 180000.Remaining goods were taken over by Q at Rs 20000. The amount of final remittance to be paid by Q to P will be:

C and D entered into a Joint Venture to construct a bridge. They did not open separate set of books. They shared profits and losses as 3:2. C contributed Rs 150000 for purchase of materials. D paid wages amounting to Rs 80000. Other expenses were paid as: C – 5000 D – 15000C purchased one machine for Rs 20000. The machine was taken over by C for Rs 10000.Total contract value of Rs 300000 was received by D. What will be the profit on venture?

R and M entered into a joint venture to purchase and sell new year gifts. They agreed to share the profit and losses equally. R purchased goods worth Rs 100,000 and spent Rs 10000 in sending the goods to M. He also paid Rs 5000 for insurance. M spent Rs 10000 as selling expenses and sold goods for 200000. Remaining goods were taken over by him at Rs 5000. What will be the amount to be remitted by M to R as final settlement?

R and M entered into a joint venture to purchase and sell new year gifts. They agreed to share the profit and losses equally. R purchased goods worth Rs 100,000 and spent Rs 10000 in sending the goods to M. He also paid Rs 5000 for insurance. M spent Rs 10000 as selling expenses and sold goods for 200000. Remaining goods were taken over by him at Rs 5000. Find out profit on venture?

A and B enter into a joint venture sharing profit and losses in the ratio 3:2. A will purchase goods and B will affect the sale. A purchase goods costing Rs 200,000. B sold it for Rs 300000. The venture is terminated after 3 months. A is entitled to get 10% interest on capital invested irrespective of utilization period.. The amount of interest received by A will be

A bought goods of the value of Rs 10000 and consigned them to B to be sold by them on a joint venture, profits being divided equally. A draws a bill on B for an amount equivalent to 80% of cost on consignment. The amount of bill will be:

A bought goods of the value of Rs 10000 and consigned them to B to be sold by them on a joint venture, profits being divided equally, A paid Rs 1000 for freight and insurance. A draws a bill on B for Rs 10000. A got it discounted at Rs 9500. B sold the goods for Rs 15000. Commission payable to B, Rs 500. Find out the profit on venture?

A bought goods of the value of Rs 10000 and consigned them to B to be sold by them on a joint venture, profits being divided equally, A paid Rs 1000 for freight and insurance. A draws a bill on B for Rs 10000. A got it discounted at Rs 9500. B sold the goods for Rs 15000. Commission payable to B, Rs 500. The amount to be remitted by B to A will be:

If any stock is taken over by the venturer, it will be treated as an:

Advise which of the statement is true:

A and B were partners in a joint venture sharing profits and losses in the proportion of 3/ 5^th and 2/5^th respectively. A supplies goods to the value of Rs 80000 and incurs expenses amounting Rs 6000. B supplies goods to the value of Rs 14000 and his expenses amount to Rs 2000. B sells goods on behalf of the joint venture and realizes Rs 150000. B entitled to a commission of 5% on sales. B settles his account by bank draft. Find out A’s share of profit on venture?

A and B were partners in a joint venture sharing profits and losses in the proportion of 3/ 5^th and 2/5^th respectively. A supplies goods to the value of Rs 60000 and incurs expenses amounting Rs 6000. B supplies goods to the value of Rs 16000 and his expenses amount to Rs 3000. B sells goods on behalf of the joint venture and realizes Rs 120000. B entitled to a commission of 5% on sales. B settles his account by bank draft. How much amount, B will pay to A as final settlement?

A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provides biscuits from stock Rs 10000. He pays expenses amounting to Rs 1000. V incurs further expenses on carriage Rs 1000. He receives cash for sales Rs 15000.He also takes over goods to the value of Rs 2000. What will be the amount to be remitted by V to A?

A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provides biscuits from stock Rs 10000. He pays expenses amounting to Rs 1000. V incurs further expenses on carriage Rs 1000. He receives cash for sales Rs 15000.He also takes over goods to the value of Rs 2000. Find out profit on venture?

A purchased 1000 kg of rice costing Rs 200 each. Carriage 2000, insurance 3000. 4/5th of the boxes were sold by B at Rs 250 per boxes. Remaining stock were taken over by B at cost. The amount of stock taken over will be:

Goods costing Rs. 10,000 destroyed by an accident, insurance claim nil.

A and B were partners in a joint venture sharing profits and losses in the proportion of 3/ 5^th and 2/5^th respectively. A supplies goods to the value of Rs 60000 and incurs expenses amounting Rs 6000. B supplies goods to the value of Rs 14000 and his expenses amount to Rs 1000. B sells goods on behalf of the joint venture and realizes Rs 100000. B entitled to a commission of 5% on sales. B settles his account by bank draft. Find out the profit on venture?

A purchased goods costing 100000. B sold the goods for Rs 150000. Profit sharing ratio between A and B equal. If same sets of books is maintained, what will be the final remittance?

A purchased goods costing 200000, B sold 4/5^th of the goods for Rs 250000. Balance goods were taken over by B at cost less 20%. If same sets of books is maintained,  find out profit on venture?