CMA Foundation · Fundamentals of Financial and Cost Accounting · Joint Venture
Anil and Bhavna start a joint venture with separate books, contributing Rs 80,000 and Rs 20,000 to the Joint Bank Account. Purchases of Rs 90,000 and expenses of Rs 6,000 are paid from the bank, and sales of Rs 1,00,000 are banked. Bhavna takes over unsold goods at Rs 8,000. Anil is entitled to a 2% commission on sales, credited to his account and not yet paid. Remaining profit is shared 3:2 between Anil and Bhavna. What does Bhavna finally receive from the Joint Bank Account?
Bhavna receives Rs 16,000. Profit after crediting the stock taken over and deducting Anil's Rs 2,000 commission is Rs 10,000, of which her 2/5 share is Rs 4,000. Her contribution of 20,000 plus 4,000 less the Rs 8,000 stock she took gives 16,000.
- ARs 16,000Correct
- BRs 24,000
- CRs 32,000
- DRs 12,000
Explanation
Profit = 1,00,000 + 8,000 stock - 90,000 - 6,000 - 2,000 commission = Rs 10,000. Shares: Anil 6,000, Bhavna 4,000. Bhavna's account: 20,000 + 4,000 - 8,000 stock taken = Rs 16,000. Check: Anil 80,000 + 2,000 + 6,000 = 88,000; the total 1,04,000 equals the bank balance (1,00,000 - 96,000 + 1,00,000). Rs 24,000 ignores the stock she took over.
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