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If unsold goods costing Rs 20000 is taken over by Venturer at Rs 15000, the Joint Venture A/c will be credited by:
- a)Rs.20000
- b)Rs.15000
- c)Rs.5,0001
- d)nil
Correct answer is option 'B'. Can you explain this answer?
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If unsold goods costing Rs 20000 is taken over by Venturer at Rs 15000...
Joint Venture Account and its Calculation
When a joint venture is formed between two or more parties, they share the profits or losses based on their agreed-upon ratio. The joint venture account is used to record the transactions related to the joint venture. In the given scenario, the unsold goods costing Rs 20000 were taken over by the venturer at Rs 15000. Let us calculate how much the Joint Venture account will be credited by.
Calculation
- The unsold goods cost Rs 20,000.
- However, the venturer takes over the goods at Rs 15,000.
- Therefore, the loss on the goods is Rs 5,000 (20,000 – 15,000).
- As per the joint venture agreement, the loss will be shared between the parties based on their agreed-upon ratio.
- We assume that the parties have agreed to share the profits or losses equally.
- Therefore, the loss of Rs 5,000 will be shared equally by the parties.
- Hence, the Joint Venture account will be credited by Rs 2,500 (5,000/2).
Answer
Therefore, the correct option is B. Rs 15,000 will be debited to the venturer's account, and Rs 2,500 will be credited to the Joint Venture account.
When a joint venture is formed between two or more parties, they share the profits or losses based on their agreed-upon ratio. The joint venture account is used to record the transactions related to the joint venture. In the given scenario, the unsold goods costing Rs 20000 were taken over by the venturer at Rs 15000. Let us calculate how much the Joint Venture account will be credited by.
Calculation
- The unsold goods cost Rs 20,000.
- However, the venturer takes over the goods at Rs 15,000.
- Therefore, the loss on the goods is Rs 5,000 (20,000 – 15,000).
- As per the joint venture agreement, the loss will be shared between the parties based on their agreed-upon ratio.
- We assume that the parties have agreed to share the profits or losses equally.
- Therefore, the loss of Rs 5,000 will be shared equally by the parties.
- Hence, the Joint Venture account will be credited by Rs 2,500 (5,000/2).
Answer
Therefore, the correct option is B. Rs 15,000 will be debited to the venturer's account, and Rs 2,500 will be credited to the Joint Venture account.
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If unsold goods costing Rs 20000 is taken over by Venturer at Rs 15000...
Joint venture will be credited by 15000
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If unsold goods costing Rs 20000 is taken over by Venturer at Rs 15000, the Joint Venture A/c will be credited by:a)Rs.20000b)Rs.15000c)Rs.5,0001d)nilCorrect answer is option 'B'. Can you explain this answer?
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