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A and B jointly underwrite 25,000 shares of 20 each issued by XYZ Ltd. It was agreed with the company that they would be allotted 1,000 shares as fully paid up towards their commission. Their profit sharing ratio is 3: 2. Applications were received from the pubic only for 22,500 shares. A paid *4,000 for postage and advertisement in addition to 60 per cent of the amount required to take up the short
subscription. B financed the balance amount. All the shares including those allotted as commission were sold. A sold 1,500 shares for 35,000 and B sold the balance of shares @ 24 per share. B incurred expenses 2,000. Sale proceeds were retained individually.
Prepare: (i) Joint Venture A/c; (ii)?
subscription. B financed the balance amount. All the shares including those allotted as commission were sold. A sold 1,500 shares for 35,000 and B sold the balance of shares @ 24 per share. B incurred expenses 2,000. Sale proceeds were retained individually.
Prepare: (i) Joint Venture A/c; (ii)?
Most Upvoted Answer
A and B jointly underwrite 25,000 shares of 20 each issued by XYZ Ltd....
Joint Venture A/c Preparation
To summarize the joint venture between A and B for underwriting and selling shares of XYZ Ltd., we need to create a Joint Venture A/c.
1. Joint Venture A/c
- Total Shares Underwritten: 25,000 shares
- Shares Allocated as Commission: 1,000 shares (fully paid)
- Shares Subscribed by Public: 22,500 shares
- Shares Held by A and B: 25,000 - 22,500 = 2,500 shares
2. Contributions
- A’s Contribution:
- Postage and Advertisement: 4,000
- 60% of Shortfall (2,500 shares * 20 × 60% = 30,000): 18,000
- Total A Contribution: 4,000 + 18,000 = 22,000
- B’s Contribution:
- 40% of Shortfall (2,500 shares * 20 × 40% = 20,000): 12,000
- Total B Contribution: 12,000
3. Sale of Shares
- A’s Sale Proceeds:
- 1,500 shares sold for 35,000
- B’s Sale Proceeds:
- Remaining shares: 25,000 - 1,500 - 1,000 (commission) = 22,500
- B’s shares sold: 22,500 * 24 = 540,000
- Total B Sale Proceeds: 540,000 - 2,000 (expenses) = 538,000
4. Profit Sharing
- Total Sale Proceeds:
- A's Sale: 35,000
- B's Sale: 538,000
- Total Profit: (35,000 + 538,000) - (22,000 + 12,000) = 539,000
- Profit Distribution:
- A’s Share: (3/5) * 539,000 = 323,400
- B’s Share: (2/5) * 539,000 = 215,600
Conclusion
This joint venture highlights the collaborative effort between A and B in underwriting, selling shares, and managing expenses. The profit sharing ratio ensures that both partners benefit proportionately based on their investment and effort contributed to the venture.
To summarize the joint venture between A and B for underwriting and selling shares of XYZ Ltd., we need to create a Joint Venture A/c.
1. Joint Venture A/c
- Total Shares Underwritten: 25,000 shares
- Shares Allocated as Commission: 1,000 shares (fully paid)
- Shares Subscribed by Public: 22,500 shares
- Shares Held by A and B: 25,000 - 22,500 = 2,500 shares
2. Contributions
- A’s Contribution:
- Postage and Advertisement: 4,000
- 60% of Shortfall (2,500 shares * 20 × 60% = 30,000): 18,000
- Total A Contribution: 4,000 + 18,000 = 22,000
- B’s Contribution:
- 40% of Shortfall (2,500 shares * 20 × 40% = 20,000): 12,000
- Total B Contribution: 12,000
3. Sale of Shares
- A’s Sale Proceeds:
- 1,500 shares sold for 35,000
- B’s Sale Proceeds:
- Remaining shares: 25,000 - 1,500 - 1,000 (commission) = 22,500
- B’s shares sold: 22,500 * 24 = 540,000
- Total B Sale Proceeds: 540,000 - 2,000 (expenses) = 538,000
4. Profit Sharing
- Total Sale Proceeds:
- A's Sale: 35,000
- B's Sale: 538,000
- Total Profit: (35,000 + 538,000) - (22,000 + 12,000) = 539,000
- Profit Distribution:
- A’s Share: (3/5) * 539,000 = 323,400
- B’s Share: (2/5) * 539,000 = 215,600
Conclusion
This joint venture highlights the collaborative effort between A and B in underwriting, selling shares, and managing expenses. The profit sharing ratio ensures that both partners benefit proportionately based on their investment and effort contributed to the venture.
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A and B jointly underwrite 25,000 shares of 20 each issued by XYZ Ltd. It was agreed with the company that they would be allotted 1,000 shares as fully paid up towards their commission. Their profit sharing ratio is 3: 2. Applications were received from the pubic only for 22,500 shares. A paid *4,000 for postage and advertisement in addition to 60 per cent of the amount required to take up the short subscription. B financed the balance amount. All the shares including those allotted as commission were sold. A sold 1,500 shares for 35,000 and B sold the balance of shares @ 24 per share. B incurred expenses 2,000. Sale proceeds were retained individually.Prepare: (i) Joint Venture A/c; (ii)?
Question Description
A and B jointly underwrite 25,000 shares of 20 each issued by XYZ Ltd. It was agreed with the company that they would be allotted 1,000 shares as fully paid up towards their commission. Their profit sharing ratio is 3: 2. Applications were received from the pubic only for 22,500 shares. A paid *4,000 for postage and advertisement in addition to 60 per cent of the amount required to take up the short subscription. B financed the balance amount. All the shares including those allotted as commission were sold. A sold 1,500 shares for 35,000 and B sold the balance of shares @ 24 per share. B incurred expenses 2,000. Sale proceeds were retained individually.Prepare: (i) Joint Venture A/c; (ii)? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A and B jointly underwrite 25,000 shares of 20 each issued by XYZ Ltd. It was agreed with the company that they would be allotted 1,000 shares as fully paid up towards their commission. Their profit sharing ratio is 3: 2. Applications were received from the pubic only for 22,500 shares. A paid *4,000 for postage and advertisement in addition to 60 per cent of the amount required to take up the short subscription. B financed the balance amount. All the shares including those allotted as commission were sold. A sold 1,500 shares for 35,000 and B sold the balance of shares @ 24 per share. B incurred expenses 2,000. Sale proceeds were retained individually.Prepare: (i) Joint Venture A/c; (ii)? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B jointly underwrite 25,000 shares of 20 each issued by XYZ Ltd. It was agreed with the company that they would be allotted 1,000 shares as fully paid up towards their commission. Their profit sharing ratio is 3: 2. Applications were received from the pubic only for 22,500 shares. A paid *4,000 for postage and advertisement in addition to 60 per cent of the amount required to take up the short subscription. B financed the balance amount. All the shares including those allotted as commission were sold. A sold 1,500 shares for 35,000 and B sold the balance of shares @ 24 per share. B incurred expenses 2,000. Sale proceeds were retained individually.Prepare: (i) Joint Venture A/c; (ii)?.
A and B jointly underwrite 25,000 shares of 20 each issued by XYZ Ltd. It was agreed with the company that they would be allotted 1,000 shares as fully paid up towards their commission. Their profit sharing ratio is 3: 2. Applications were received from the pubic only for 22,500 shares. A paid *4,000 for postage and advertisement in addition to 60 per cent of the amount required to take up the short subscription. B financed the balance amount. All the shares including those allotted as commission were sold. A sold 1,500 shares for 35,000 and B sold the balance of shares @ 24 per share. B incurred expenses 2,000. Sale proceeds were retained individually.Prepare: (i) Joint Venture A/c; (ii)? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A and B jointly underwrite 25,000 shares of 20 each issued by XYZ Ltd. It was agreed with the company that they would be allotted 1,000 shares as fully paid up towards their commission. Their profit sharing ratio is 3: 2. Applications were received from the pubic only for 22,500 shares. A paid *4,000 for postage and advertisement in addition to 60 per cent of the amount required to take up the short subscription. B financed the balance amount. All the shares including those allotted as commission were sold. A sold 1,500 shares for 35,000 and B sold the balance of shares @ 24 per share. B incurred expenses 2,000. Sale proceeds were retained individually.Prepare: (i) Joint Venture A/c; (ii)? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B jointly underwrite 25,000 shares of 20 each issued by XYZ Ltd. It was agreed with the company that they would be allotted 1,000 shares as fully paid up towards their commission. Their profit sharing ratio is 3: 2. Applications were received from the pubic only for 22,500 shares. A paid *4,000 for postage and advertisement in addition to 60 per cent of the amount required to take up the short subscription. B financed the balance amount. All the shares including those allotted as commission were sold. A sold 1,500 shares for 35,000 and B sold the balance of shares @ 24 per share. B incurred expenses 2,000. Sale proceeds were retained individually.Prepare: (i) Joint Venture A/c; (ii)?.
Solutions for A and B jointly underwrite 25,000 shares of 20 each issued by XYZ Ltd. It was agreed with the company that they would be allotted 1,000 shares as fully paid up towards their commission. Their profit sharing ratio is 3: 2. Applications were received from the pubic only for 22,500 shares. A paid *4,000 for postage and advertisement in addition to 60 per cent of the amount required to take up the short subscription. B financed the balance amount. All the shares including those allotted as commission were sold. A sold 1,500 shares for 35,000 and B sold the balance of shares @ 24 per share. B incurred expenses 2,000. Sale proceeds were retained individually.Prepare: (i) Joint Venture A/c; (ii)? in English & in Hindi are available as part of our courses for UPSC.
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Here you can find the meaning of A and B jointly underwrite 25,000 shares of 20 each issued by XYZ Ltd. It was agreed with the company that they would be allotted 1,000 shares as fully paid up towards their commission. Their profit sharing ratio is 3: 2. Applications were received from the pubic only for 22,500 shares. A paid *4,000 for postage and advertisement in addition to 60 per cent of the amount required to take up the short subscription. B financed the balance amount. All the shares including those allotted as commission were sold. A sold 1,500 shares for 35,000 and B sold the balance of shares @ 24 per share. B incurred expenses 2,000. Sale proceeds were retained individually.Prepare: (i) Joint Venture A/c; (ii)? defined & explained in the simplest way possible. Besides giving the explanation of
A and B jointly underwrite 25,000 shares of 20 each issued by XYZ Ltd. It was agreed with the company that they would be allotted 1,000 shares as fully paid up towards their commission. Their profit sharing ratio is 3: 2. Applications were received from the pubic only for 22,500 shares. A paid *4,000 for postage and advertisement in addition to 60 per cent of the amount required to take up the short subscription. B financed the balance amount. All the shares including those allotted as commission were sold. A sold 1,500 shares for 35,000 and B sold the balance of shares @ 24 per share. B incurred expenses 2,000. Sale proceeds were retained individually.Prepare: (i) Joint Venture A/c; (ii)?, a detailed solution for A and B jointly underwrite 25,000 shares of 20 each issued by XYZ Ltd. It was agreed with the company that they would be allotted 1,000 shares as fully paid up towards their commission. Their profit sharing ratio is 3: 2. Applications were received from the pubic only for 22,500 shares. A paid *4,000 for postage and advertisement in addition to 60 per cent of the amount required to take up the short subscription. B financed the balance amount. All the shares including those allotted as commission were sold. A sold 1,500 shares for 35,000 and B sold the balance of shares @ 24 per share. B incurred expenses 2,000. Sale proceeds were retained individually.Prepare: (i) Joint Venture A/c; (ii)? has been provided alongside types of A and B jointly underwrite 25,000 shares of 20 each issued by XYZ Ltd. It was agreed with the company that they would be allotted 1,000 shares as fully paid up towards their commission. Their profit sharing ratio is 3: 2. Applications were received from the pubic only for 22,500 shares. A paid *4,000 for postage and advertisement in addition to 60 per cent of the amount required to take up the short subscription. B financed the balance amount. All the shares including those allotted as commission were sold. A sold 1,500 shares for 35,000 and B sold the balance of shares @ 24 per share. B incurred expenses 2,000. Sale proceeds were retained individually.Prepare: (i) Joint Venture A/c; (ii)? theory, EduRev gives you an
ample number of questions to practice A and B jointly underwrite 25,000 shares of 20 each issued by XYZ Ltd. It was agreed with the company that they would be allotted 1,000 shares as fully paid up towards their commission. Their profit sharing ratio is 3: 2. Applications were received from the pubic only for 22,500 shares. A paid *4,000 for postage and advertisement in addition to 60 per cent of the amount required to take up the short subscription. B financed the balance amount. All the shares including those allotted as commission were sold. A sold 1,500 shares for 35,000 and B sold the balance of shares @ 24 per share. B incurred expenses 2,000. Sale proceeds were retained individually.Prepare: (i) Joint Venture A/c; (ii)? tests, examples and also practice UPSC tests.
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