Cr. Dr. Date 35,000 48,000 Joint Venture Account Particulars Date Particulars To Joint Bank A/c (5,000 shares) 50,000 By Gavaskar Alc (Sale of 3,000 shares) To Joint Bank A/c Postage & Advertisement) 4,000 By Biswanath Alc (Sale proceeds) To Joint Bank Alc Expenses) 2,000 To Co-venturers' Alcs - Share of Profit Gavaskar 3/5th 16,200 Biswanath 2/5th 10.800 27,000 83,000 Joint Bank Account Particulars Date Particulars To Gavaskar Alc (60% of 50,000 + 4,000) 34,000 By Joint Venture A/c (Postage and Advertisement) To Biswanath Ac (40% of 50,000 + + 2,000) 22,000 By Joint Venture Ac Expenses) To Biswanath AC 15,200 By Joint Venture Alc (Purchases) By Gavaskar AC 71,200 83,000 Cr. Dr. Date 4,000 2.000 50,000 15,200 71,200 941 Dr. Co-venturers' Accounts Cr. Date Particulars Gavaskar Biswanath Date Particulars Gavaskar Biswanath To Joint Venture AC 35,000 48,000 By Joint Bank AC 34,000 22,000 To Joint Bank Alc 15,200 By Joint Venture A/c (Profit) 16,200 10,800 By Joint Bank Alc 15,200 50,200 48,000 50,200 48,000 Illustration 7 X and Y entered into a joint venture to act as underwriters of a newly formed company which issued 30,000 shares of 10 each. The extent of underwriting was 80%. They opened a joint bank account by contributing 35,000 each. Public subscribed for 22,000 shares and the underwriters duly discharged their obligations in consideration of a commission of 5% which they received by cheque. Miscellaneous expenses amounting to 1,500 were met out of the Joint Bank Account. X took 1,500 shares at 9 per share and Y took 1,600 shares at 9.50 per share. The rest of the shares were sold at 12 per share, brokerage being Re 0.50 per share. Profits on joint venture are to be shared equally. You are required to prepare the Joint Venture Account, Joint Bank Account and the Personal Accounts of X and Y