A of Delhi and B of Bangalore
entered into a joint venture for purchase and sale of one lot of mopeds.The
cost of each moped was Rs.3,600 and the fixed retail selling price; Rs.4,500.
The following were the recorded transactions:
2016
Jan 1 A purchased 100 mopeds paying Rs.72,000 in
cash on account
A raised a loan from X Bank for Rs.50,000 at
18% p.a., interest repayable with loan amount on1.3.2016.
A forwarded 80 mopeds to B
incurring Rs.2,880 as forwarding and insurance charges.
Jan. 7 B received the consignment and paid Rs.720 as
clearing charges.
A sold 5 mopeds for cash.
B sold 20 mopeds for cash.
Feb. 1 B raised a loan of
Rs.1,50,000 from Y Bank, repayable with interest at 18% p.a on 1.3.2016.
B telegraphically transferred
Rs.1,50,000 to A incurring charges of Rs.50. A paid balance due for the mopeds.
Feb. 26
A sold the balance mopeds for cash.
B sold balance mopeds for cash.
A paid selling expenses
Rs.5,000.
B paid selling expenses
Rs.20,000.
Mar. 1 Accounts settled between the
venturer and loans repaid, profit being appropriated equally.
You are required to show Memorandum
Joint Venture A/c. You are also required to show
(1) Joint Venture with B A/c in A’s
books; and
(2) Joint Venture with A A/c in B’s
books.
Assume each venturer recorded only such transactions as
concluded by him