943 To Asim : Cost of T.V.Sets 36,000 By Asim (sale proceeds) 47,500 Repairs 3.300 By Anup : Interest (Note 2) 491 39.791 Sale proceeds 16,400 To Anup: Cost of T.V.Sets 18.300 T.V. taken over (Note 1) 7.344 23.744 Repairs 2.100 Interest (Note 2 510 20.910 To Net Profit Asim 5,272 Anup 5.271 10,543 71.244 71 244 In the books of Asim Dr. Joint Venture with Anup Account Cr. Date Particulars Date Particulars 2016 2016 Aug 1 To Bank A/c (Purchases of T.V.) 36,000 Sep 15 By Bank A/c (Sale Proceeds) 47,500 To Bank Alc (Repairs) 3,300 Nov 30 To Interest Received Alc 491 To Profit and Loss Alc 5,272 (Share of Profit) To Bank A/c (Final Payment) 2.437 47,500 47,500 Working Notes: (1) Calculation of Unsold Stock taken over by Anup Cost of 1 T.V. (18,300/3) 6,100 Add: Proportionate repairs cost ( 2.100/3) 700 6,800 Add: 8% Profit on 6,800 544 Value of 1 T.V. taken over by Anup 7344 (2) Calculation of Interest Asim invested 39,300 ( 36,000 + 3,300) on 1.8.2016 but received back 47.500 on 15.9.2016. Therefore, he is entitled to interest on capital invested on 39,300 @ 10% pa. for 1.5 months (1.8.2016 to 15.9.2016). Therefore, interest = 39,300 10% x 1.5/12 = * 491. Anup invested 20,400 R 18,300+ 2.100) on 1.9.2016 but received back ? 16,400 on 25.11.2016. If interest is calculated to nearest month, he is entitled to interest on capital invested on 20,400 @ 10% p.a. for 3 months (1.9.2016 to 30.11.2016). Therefore, interest = 20,400 10%*3/12=510. Illustration 19 A and B entered into a joint venture as equal partners and guaranteed, as underwriters, the subscription at par of 10,00,000 shares of Re I each of Madan Ltd and to pay all expenses upto allotment in consideration of Madan Ltd issuing to them 30,000 other shares of Re I cach fully paid up and paying 20,000 in cash. A introduced cash into the business to meet the following expenses : Stamp charges and registration fees etc 5,000; Advertisement charges 2,000. B introduced cash to meet the following expenses : Printing charges of documents 4,000; Solicitor's charges 2,500; Rent 500. Application fell short of 10,00,000 shares by 40,000 shares. A took up those shares on joint account in terms of their agreement with Madan Ltd and himself paid for those shares. Finally, Madan Ltd handed over the shares and the cash to A and B in full payment of the underwriting commission as per agreement. The cash thus received was taken over by B. Out of the total 70,000 shares received by the venturers, 55.000 shares were sold out for 50,000 and the proceeds were taken up by A and the rest of the shares were taken up by B at an agreed value of 12,000. Prepare Memorandum Joint Venture Account including necessary accounts in the books of both the parties assuming that they settled their accounts by payment of cash