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Pand Q buy on joint venture 1,000 shares of a company@ rupees 25 per share plus expenses rupees 108. P contributes 2/3 and Q 1/3 of the cost. 500 shares are sold @ rupees 30 per share less rupees 60 for expenses and 440 shares are sold at rupees 27 less expenses rupees 48. The balance of the shares which remain unsold as also any profit or loss divided between P and Q in proportion to their capital ratio. Prepare account showing venture at the end of the year.?
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Pand Q buy on joint venture 1,000 shares of a company@ rupees 25 per s...
Joint Venture Account

| Particulars | Amount (Rs.) |
| --- | --- |
| To Expenses | 108 |
| To Cash A/c (P's contribution) | 1,692 (2/3 of 1,500) |
| To Cash A/c (Q's contribution) | 828 (1/3 of 1,500) |
| By Sales A/c | 12,600 (500 shares sold @ Rs. 30 per share) |
| By Expenses A/c | 60 |
| By Sales A/c | 11,848 (440 shares sold @ Rs. 27 per share) |
| By Expenses A/c | 48 |
| By Balance c/d (unsold shares) | 2,064 |
| Total | 15,600 |
| Total | 15,600 |

Profit and Loss Account

| Particulars | Amount (Rs.) |
| --- | --- |
| To Joint Venture A/c (P's share of profit) | 2,040 (2/3 of Rs. 3,060) |
| To Joint Venture A/c (Q's share of profit) | 1,020 (1/3 of Rs. 3,060) |
| By Balance b/d | 0 |
| Total | 3,060 |
| Total | 3,060 |

Explanation

- The joint venture account is prepared to record the purchase and sale of shares and expenses incurred.
- P and Q's contributions are recorded in the joint venture account in proportion to their capital ratio.
- The sales of shares and expenses incurred on sales are recorded in the joint venture account.
- The balance c/d represents the value of unsold shares, which is transferred to the balance sheet.
- The profit or loss is calculated by deducting the cost of unsold shares from the total sales and expenses and is divided between P and Q in proportion to their capital ratio.
- The profit or loss is recorded in the profit and loss account.
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Pand Q buy on joint venture 1,000 shares of a company@ rupees 25 per share plus expenses rupees 108. P contributes 2/3 and Q 1/3 of the cost. 500 shares are sold @ rupees 30 per share less rupees 60 for expenses and 440 shares are sold at rupees 27 less expenses rupees 48. The balance of the shares which remain unsold as also any profit or loss divided between P and Q in proportion to their capital ratio. Prepare account showing venture at the end of the year.?
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Pand Q buy on joint venture 1,000 shares of a company@ rupees 25 per share plus expenses rupees 108. P contributes 2/3 and Q 1/3 of the cost. 500 shares are sold @ rupees 30 per share less rupees 60 for expenses and 440 shares are sold at rupees 27 less expenses rupees 48. The balance of the shares which remain unsold as also any profit or loss divided between P and Q in proportion to their capital ratio. Prepare account showing venture at the end of the year.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Pand Q buy on joint venture 1,000 shares of a company@ rupees 25 per share plus expenses rupees 108. P contributes 2/3 and Q 1/3 of the cost. 500 shares are sold @ rupees 30 per share less rupees 60 for expenses and 440 shares are sold at rupees 27 less expenses rupees 48. The balance of the shares which remain unsold as also any profit or loss divided between P and Q in proportion to their capital ratio. Prepare account showing venture at the end of the year.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Pand Q buy on joint venture 1,000 shares of a company@ rupees 25 per share plus expenses rupees 108. P contributes 2/3 and Q 1/3 of the cost. 500 shares are sold @ rupees 30 per share less rupees 60 for expenses and 440 shares are sold at rupees 27 less expenses rupees 48. The balance of the shares which remain unsold as also any profit or loss divided between P and Q in proportion to their capital ratio. Prepare account showing venture at the end of the year.?.
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