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Joint venture

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harsimran (Querist)
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13 December 2013 gattu n bittu entered into joint venture gattu bought goods of 100000 nd condigned them to bittu to be sold by him on joint venture profits are divided equally gattu paid 10000 as freight n insurance bittu sold goods for 150000 comision payable to bittu 5000 th e amt remitted by bittu to gattu will be

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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13 December 2013 Rs.1,27,500/-
.
Working:

Profit is Rs.150000-10000-5000=35000
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Share of Bittu in profits:
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50% = Rs.17500
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Amount paid for exp : Rs.5000
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Hence to be retained : 22500
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Balance 1,50,000-22,500=1,27,500 to be remitted to Gattu.
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Better you make the books of account of Gattu because this is the simple case hence can be counted easily. But when more transactions are there; then without maintaining books of account; it would be difficult to calculate the correct amount.
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