Question

Apate, Bachute and Chapate undertook construction of the Cultural Hall of a Company at a contract price of Rs. 60,000 payable in Cash Rs. 40,000 and Rs. 20,000 in the form of Debentures  of a company. They shared profits and losses in the ratio of 3 : 2 : 1 respectively. Apate Rs. 30,000, Bachute Rs. 20,000, Chapate Rs. 10,000.

The following payments are made out through Joint Bank Account.

1.	Purchase of materials	Rs.	25,000
2.	Payment of wages	Rs.	7,700
3.	Purchase of plant	Rs.	4,500
4.	Other charges	Rs.	1,100
	Apate brings a truck of	Rs.	4,000
	Bachute brings materials of	Rs.	5,500
	Chapate brings a mixer worth	Rs.	1,000

At the close of the venture the unused materials were taken by Apate for Rs. 500.

Bachute took over the mixer and plant for Rs. 2,700.

The truck was sold in the market for Rs. 2,200.

The contract price was received as per the agreement.

Chapate agreed to take over the debentures at Rs. 19,000.

Prepare :	1.	Joint Venture Account
	2.	Joint Bank Account
	3.	Co-Venturer's Account

Answer 1

Joint Venture Account
Dr.					Cr.
Date	Particulars			Amount (Rs)	Date	Particulars	Amount (Rs)
	Joint Bank					Apate (Materials)	500
	Materials	25,000				Bachute (Mixer)	2,700
	Wages	7,700				Joint Bank (Contract Price)	40,000
	Plant	4,500				Joint Bank (Truck)	2,200
	Other Charges	1,100		38,300		Debenture A/c	20,000
	Apate (Truck)			4,000
	Bachute (Materials)			5,500
	Chapate (Mixer)			1,000
	Debentures A/c (Loss on Debenture)			1,000
	Profit
	Apate		7,800
	Bachute		5,200
	Chapate		2,600	15,600
				65,400			65,400

 

Joint Bank Account
Dr.			Cr.
Date	Particulars	Amount (Rs)	Date	Particulars	Amount (Rs)
	Apate	30,000		Joint Venture	38,300
	Bachute	20,000		Apate	41,300
	Chapate	10,000		Bachute	28,000
	Joint Venture	40,000
	Joint Venture	2,200
	Chapate	5,400
		1,07,600			1,07,600

 

Apate’s Account
Dr.			Cr.
Date	Particulars	Amount (Rs)	Date	Particulars	Amount (Rs)
	Joint Venture	500		Joint Bank	30,000
	Joint Bank (Final Payment)	41,300		Joint Venture (Truck)	4,000
				Joint Venture (Profit)	7,800
		41,800			41,800

 

Bachute’s Account
Dr.			Cr.
Date	Particulars	Amount (Rs)	Date	Particulars	Amount (Rs)
	Joint Venture	2,700		Joint Bank	20,000
	Joint Bank (Final Payment)	28,000		Joint Venture (Materials)	5,500
				Joint Venture (Profit)	5,200
		30,700			30,700

 

Chapate’s Account
Dr.			Cr.
Date	Particulars	Amount (Rs)	Date	Particulars	Amount (Rs)
	Debentures	19,000		Joint Bank	10,000
				Joint Venture (Mixer)	1,000
				Joint Venture (Profit)	2,600
				Joint Bank  (Final Payment)	5,400
		19,000			19,000

Working Notes:

Debenture Account
Dr.			Cr.
Date	Particulars	Amount (Rs)	Date	Particulars	Amount (Rs)
	Joint Venture	20,000		Chapate	19,000
				Joint Venture	1,000
		20,000			20,000

WN2 Distribution of Profit

\[\begin{array}{l}\text{Apate} = 15, 600 \times\frac{3}{6}= Rs\ 7, 800 \\ \text{Bachute} = 15, 600 \times\frac{2}{6}= Rs\ 5, 200 \\ \text{Chapate} = 15, 600 \times\frac{1}{6}= Rs\ 2, 600\end{array}\]