QUERY ON CPT ACCOUNTS

CPT 1727 views 7 replies

cpt

30 Points Joined June 2009

NEED HELP

1) A BOUGHT GOODS OF THE VALUE OF rs 10000 AND CONSIGNED THEM B TO BE SOLD BY THEM ON A JOINTVENTURE, PROFITS BEING DIVIDED EQUALLY, A PAID Rs 1000 FOR FREIGHT AND INSURANCE. A DRAWS BILL ON B FOR Rs. 10000. A GOT IT DISCOUNTED AT Rs. 9500. B SOLD THE GOODS FOR Rs. 15000. COMMISSION PAYABLE TO B, Rs 500. FIND OUT THE PROFIT ON VENTURE?

2) A AND B WERE PARTNERS IN A JOINT VENTURE SHARING PROFITS AND LOSESS IN THE PROPORTION OF 3/5th AND 2/5th RESPECTIVELY. A SUPPLIES GOODS TO THE VALUE OF RS.60000 AND INCURS EXPENSES AMT Rs. 6000. B SUPPLIES GOODS TO THE VALUE OF Rs 16000 AND HIS EXPENSES AMT TO Rs 3000. B SELLS GOODS ON BEHALF OF THE JOINT AND REALIZES RS 120000. B ENTITLED TA A COMMISSION OF 5% ON SALES. B SETTLES HIS ACCOUNT BY BANK DRAFT. HOW MUCH AMT, B WILL PAY TO A AS FINAL SETTLEMENT?

PLS LET ME KNOW WITH CLEAR PICTURE, HOW IT WILL ARRIVE..

Replies (7)

CA Paras jain

Audit Senior Assistant

1544 Points Joined August 2008

Q1:- expenses on venture:

purchases+fright n insurance+commmision payable

i.e. 10000+1000+500=11500

nw sales =rs 15000

profit on venture = 15000-11500 = 3500rs

CA Paras jain

Audit Senior Assistant

1544 Points Joined August 2008

for d 2nd question u need to draw A's account with B

do u knw d concept of drawing dis account or shud i xplain u wd dat also??

cpt

30 Points Joined June 2009

thanks for ur reply..

1) quesiont answer is 3000, i want to know how to get that answer...

2) i know that things and answer is 83400, we got that but i need proper methode for that...

can u give me proper method for both....

Guest

for first question create JV account

and debit side enter all expenses and purchases

credit all gain wit closing stock

then total both sides

the difference amount of debit and credit side is profit or loss

CA Paras jain

Audit Senior Assistant

1544 Points Joined August 2008

Q2:-

prepare joint venture A/c by:

debit:-60000 + 16000 + 6000 + 3000 + 6000(commision to B) = 91000

nw credit:- 120000(sales)

profit on venture = 120000-91000 = 29000

profit to A = 29000 x 3/5 = 17400

profit to B = 29000x 2/5 = 11600

commision to B = 120000 x 5/100 = 6000

nw prepare A's a/c:-

credit:- 60000 + 6000 + 17400 = 83400

debit:- nil

so remmitance to A = Rs.83400

kumar shan

student

138 Points Joined October 2009

Amit Ltd. purchased a machine on

01.01.2003 for Rs. 1,20,000. Installation

expenses were Rs. 10,000. Residual value

after 5 years Rs. 5,000. On 01.07.2003,

expenses for repairs were incurred to the

extent of Rs. 2,000. Depreciation is provided

under straight line method. Annual

Depreciation = _________.

a. 13,000

c. 21,000

b. 17,000

d. 25,000

please provide me some solution over this i am confused about this correct answer its whether 13000 or 25000

nikhil

(CA Final) Article

363 Points Joined August 2009

Originally posted by :ρaraѕ
"	Q1:- expenses on venture: purchases+fright n insurance+commmision payable i.e. 10000+1000+500=11500 nw sales =rs 15000 profit on venture = 15000-11500 = 3500rs	"