joint ventures please help !!

CPT 635 views 9 replies

mr . a supplied goods woth rs 60000 and incurred expenses rs 6000 .... mr . b also supplied goods worth 16000 and incurred expenses rs 3000 .. he effected the sale of goods on behalf of joint venture and realized rs 120000 .. he is also entittled to a commission of 5 pc on sales ... what is the final settlement to be paid by mr .b to mr .a

i am not getting a correct answer for that ...

one more doubt is the commission which isearned by b .. while preparing joint ventures account with co-venture .. in the books of mr . b it should be shown in credit side ryt ??

thanks in advance

Replies (9)

is 80500 the answer......

yes it should appear in credit side

The answer is Rs. 80500/- if the profit sharing ratio is to be taken 1:1.

Else, the answer would be Rs. 88517/- if profit is to be taken as per the invested amount in the joint venture.

But in your question NO RATIO is discussed then may be we have to consider it as 1:1.....

Commision should appear in the credit side....

Is this Correct...?

Sales                           120000

Purchase                       44000 (60000 - 16000)

Expenses                         3000 (6000 - 3000)

Commission                   6000 (5% on 120000)

Gross Profit                  67000

Share of A                      33500

B owes to A                    80500 (33500 + 47000(60000+6000-16000-3000))

I AM ALSO CONFUSED RELATING TO THIS ...

I GOT PROFIT 29000 !!! IN MEMORANDUM JOINT VENTURE ACCOUNT ..I N  THE BOOKS OF B WE HAVE TO PREPARE A 'S A/C RYT ?

DEBIT SIDE                                              CREDIT SIDE 

                                                                    SALE PROCEEDS -120000

 

BSHARE OF PROFIT -11600                 COMMISION 6000

EXPENSES3000

16000

REMITTANCE 126000-11600-3000-16000 =95400 IS TYS RYT ?

Profit= 120000-60000-6000-16000-3000-6000=29000

A will get 14500 from proceeds

A will get = 60000+6000+14500=80500

Good answer Akash

one doubt  .. from where that proceeds of 14500 will come ??

one doubt  .. from where that proceeds of 14500 will come ??

Devide Profit of Rs. 29000 by Two (A & B)

Girish


CCI Pro

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