Joint Venture-Test 1

M and N enter into a Joint Venture where M supplies goods worth Rs.6,000 and spends Rs.300 on expenses. N sells the entire lot for Rs.7,800 meeting selling expenses amounting to Rs.300. Profit sharing  ratio equal. N remits to M the amount due. The amount of remittance will be :

What is the nature of Joint Venture with Co-venture’s A/c’s :

When unsold stock is taken away by a co-venturer, then _______ account is debited :

A bought goods costing 2,00,000 B sold 4/5th of goods for Rs.2,50,000. Balance goods were taken over by B at cost less 20%. Find out profit on venture :

Joint Venture Accounting follows which concept :

Joint Venture is a _____ Account.

A for Joint Venture with B, purchased goods costing Rs.2,00,000. B sold the goods for Rs.2,80,000. Unsold material costing Rs.10,000 was taken over by A at Rs.8,000. A is entitled to get 1% commission on purchases. B is entitled to get 2% commission on sales, profit on venture will be :

The parties to Joint Venture are called :

When co-ventures initially contribute for a Joint Venture which account should be debited in case when separate set of books are maintained :

A and B enter into a Joint Venture to underwrite the shares of K Ltd. K Ltd make an issue of 1,00,000 equity shares of Rs.10 each. 80% of issue are subscribed by the party. The profit sharing ratio between A and B is 3:2. The balance unsubscribed shares are purchased by A and B in profit sharing ratio. How many shares are purchased by A ?

If separate set of books is maintained and discount is received at the time of purchase of goods then such a discount will be treated as :

X and Y enter into a Joint Venture. X supplied goods to Y worth Rs.70,000. X incurred expenses amounting to Rs.6,000 on Joint Venture. The venture resulted in a total profit of Rs.15,000 of which their ratio of distribution is 2 : 1. The entire sale proceeds were received by Y. Amount received by X from Y in final settlement will be :

For material supplied from over stock by any of the venture, the correct journal entry will be :

(In case of Separate set of books of a joint venture)

Memorandum Joint Venture account is prepared :

X spending a sum of Rs.10,000 on account of Joint Venture, will be credited to ____ account in case of the records being maintained in the books of X :

A and B enter into a Joint Venture sharing profits and losses equally. A bought 5000 kg of rice @ Rs.25/kg. B bought 1000 kg of wheat @ Rs.30/kg. A sold 1000 kg of wheat @ Rs.35/kg and B sold 5000 kg of rice @ Rs.30/kg. The profit on venture will be :

Following are the characteristics of Joint Venture except :

Which of the following methods of valuation of closing stock is followed in joint venture accounting ?

Karim and Rahim enter a joint venture sharing profits in 2 : 1. Karim purchases goods of Rs.2,00,000 and Rahim sells goods of Rs.2,50,000. Karim gets 1% commission on purchase and Rahim gets 5% commission on sales. Find profit on joint venture.

A and B entered into a joint venture. They agreed to share profits and losses equally. A purchased goods worth Rs.16,000. Goods  of Rs.4,000 were destroyed by fire. Insurance claim of Rs.3,000 is received. B sold the rest of the goods for Rs.20,000. A and B share profits equally A’s share of profits is :

A and B entered into Joint Venture, A supplied goods worth Rs.7,000 and incurred expenses of Rs.300. B sold the goods for Rs.10,000 and incurred expenses of Rs.500. What is the amount of final remittance ?

Which of the following is incorrect ?

A and B entered into a Joint Venture. A bought goods for Rs.6,00,000. He sold 80% of the goods for Rs.5,60,000 and took the remaining goods at cost less 20%. Find the amount of profit.

When Memorandum Joint Venture Method is followed. In Books of X, “Joint Venture with Y A/c” will be credited with _____ for amount received by X.

Which of the following statement is true ?

A & B started a Joint Venture. After the sales the unsold stock worth Rs.15,000 was taken over by B at a cost of Rs.20,000. The amount to be credited to Joint venture Account will be ?

X and Y entered into a joint venture to sell 1,000 bags of wheat costing Rs.200 each. X paid Rs.2,000 for freight and Rs.3,000 for insurance. 4/5th of the bags were sold by Y at Rs.250 each bag. Remaining stock was taken over by Y at cost. the amount of the stock taken over by Y will be :

Tinku and Bunty enter into a Joint Venture to share profits an losses equally. Tinku supplied 200 Refrigerators costing Rs.2,00,000 to Bunty incurring freight charges Rs.10,000. Bunty sold 140 Refrigerators for Rs.2,40,000. He took over 10 refrigerators himself. The profit and loss on joint venture will be :

In case of Joint Venture, a minor :

A and B entered in a Joint Venture and decided to share profits and losses equally.

A supplied goods worth Rs.7,000 and incurred expenses of Rs.300. B sold the goods for Rs.10,000 and incurred expenses of Rs.500. what will be the amount of the final remittance to be send by B to A ?