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a | X, Y and Z entered into a joint venture to construct a premises and the contract price was Rs. 4,00,000. Payable
Rs. 2,00,000 in cash and Rs. 2,00,000 in shares. X,Y and Z contributed Rs. 1,00,000 each. The following
payments were made through bank: Raw materials Rs. 75,000; Transportation charges Rs. 25,000; Machinery Rs.
50,000; Insurance Rs. 25,000. Besides this X paid other expenses Rs. 20,000. Y paid for mixture worth Rs. 20,000
and Z brought in materials of Rs. 20,000. After completion X and Z took over unused materials of Rs. 5,000 each
and Y took over the mixture for Rs. 10,000. The scrap of plant was sold for Rs. 8,000. Due to a certain defect,
contract price was reduced by Rs. 10,000 and shares were taken over by X at a premium of 5%. Prepare Joint
Venture A/c. Joint Bank A/c and Co ± venturer¶s.

 | „rom the following information you are required to prepare the Trading account, profit and loss account and
Balance sheet as on 31st March, 2005.
Trial Balance as on 31st March, 2005
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  Credit (Rs.)
    1, 00, 000
    2, 30, 000
 
 4, 000
 
 1, 000
Stock on 1 ± 1 ± 2004 2, 20, 000
Bills Receivable 5, 000
Purchases 2, 95, 000
Sales 2, 00, 000
Bills Payable 1, 60, 000
Return In ward 5, 000
Return Outward 4, 500
Plant and Machinery 1, 00, 000
Loose Tools 24, 000
Patents 25, 000
Sundry Debtors 1, 25, 000
Sundry Creditors 2, 40, 000
Cash at Bank 77, 550
Wages 19, 000
Salaries 17, 500
Rent and Taxes 7, 950
Insurance 3, 000
Printing and Stationery 2, 000
Power and „uel 3, 500
9, 34, 500 9, 34, 500
Adjustment
1.| Stock on 31st March, 2004 is valued at Rs. 30,000 but is market value is Rs. 35,000.
2.| Depreciate plant and machinery @ 5% p.a. Patents by 20%.
3.| Insurance were prepaid for Rs. 200.
4.| Salaries outstanding amounted to Rs. 800.
5.| Maintain Reserve for Doubtful debts at 10% of Sundry debtors.
6.| Goods worth Rs. 5000 were destroyed by fire and the insurance company admitted a claim for Rs. 3000 only.
Sachin has withdrawn goods worth Rs. 500 for his own use, but no entry is passed in the books.
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a | Akash, Sameer and Sidharth entered into a joint venture to buy and sell leather goods sharing profits and losses
equally. Akash purchased and sent to Sidharth for selling 200 belts @ Rs. 90 each and 150 wallets @ Rs. 75 each.
He spent Rs. 750 on transport. Sameer purchased 200 pouches @ Rs. 120 each, paid Rs. 1,000 for packing and
transport and sent them to Sidharth. Sidharth sold all the leather goods at the total amount of Rs. 60,000. His
selling expenses amounted to Rs. 1,100. Prepare Joint Venture Account, Sameer Account and Sidharth Account in
the books of Akash.
 | Hira and Manik are partners in a firm sharing profits and losses in the ratio of their opening capitals. Below given
is their Trial Balance as on 31st March 1998.
Trial Balance as at 31st March 1998

  

 Rs.
Plant and Machinery 50,000 Sales 2,40,000
Opening Stock 30,000 Discount 2,000
Purchases 80,000 Sundry Creditors 20,000
„reehold Land & Building 85,000 Bills Payable 10,750
Carriage inwards 1,700 Hira¶s Loan A/c 50,000
Carriage outwards 2,500    
Wages 16,000 
 50,000
Sundry Debtors 50,000   25,000
Salaries 12,000
„urniture 18,000
Trade Expenses 6,000
Return Inwards 950
Advt. Suspense A/c 12,500
Discount 900
½





 3,000
  2,000
Bills Receivable 20,000
Insurance 1,200
Bad debts 1,000
Cash at Bank 5,000
3,97,750 3,97,750
You are required to prepare the Trading and Profit and Loss account of the firm for the year ended 31st March 1998 and
the Balance sheet as at that date after taking into consideration the following adjustments.
1.| Closing stock Rs. 45,000
2.| Depreciate Plant @10% p.a. and „urniture @20%p.a.
3.| Appreciate „reehold Land & Building to Rs. 90,000
4.| Bad debts reserve to be written off against 2 ½ % on sundry debtors.
5.| Advertisement Suspense A/c is to be written off against revenue over five years.
6.| Partner¶s Drawings are to bear interest @10% p.a. amounts were withdrawn evenly throughout the year.
7.| Annual charge for insurance is Rs. 1,000 the balance represents amount paid in advance
8.| Hira gave loan @ 10% to the firm on 30th September, 1997.
9.| Manik was to be allowed a partnership salary of Rs. 250/- p.m.