Q.1A and B entered into a joint venture to take a building contract which was worth of Rs. 240,000. They provide following information regarding the expenses incurred by them.

Materials.6800050000

Cement1300017000

Wages 0000027000

Architect fee1000000000

Plant 0000020000

License000005000

Plant was value at Rs. 10000 at the end of contract and A agreed to take it at that value. Contract amount of Rs, 240000 was received by B.

Pass necessary journal entries in the book of A and B and prepare joint venture and co-ventures account assuming 1/4^th and 3/4^th profit sharing ratio.

Q.2A. Ltd. Forwarded on 1^st December, 2020, 50 pressure cookers to kae of Mumbai to sold on behalf of H. ltd. The cost of one pressure cooker was Rs.1200 but the invoice price was 1600. H ltd. Incurred Rs. 2000 on freight and insurance. Kale received the consignment on 14^th December, 2020 and accepted a 3 months draft drawn upon him by H. ltd for Rs.40000. kale paid Rs. 1050 as rent and Rs 250 as insurance and by 31^st March had disposed of 40 pressure cookers at Rs.1640 each. Kale is entitled to a commission of 5 per cent on sales including a del credited commission of 1 %. Kale sold pressure cookers on credit and was not able to recover sale proceeds of one pressure cooker because of insolvency of the debtor.

Required:

Make all the legder accounts in the books of H.Ltd, and

Pass journal entries for all the transactions relating to consignment.

Q.3Soban limited with its head office in Kolkata invoices goods to its branch at Mumbai at 20% less than the catalogue price which is cost plus 50% with instructions that cash sales were to be made at invoice price and credit sales at catalogue price. Head office also gave the instruction to provide discount @15% of catalogue price on prompt payments by debtors. From the particulars available from the branch, prepare the branch stock account, branch adjustment account and branch profit and loss account for the year ended 31^st march 2020. (showing workings) in the head office books:

Stock on 1^st April 2019 (invoice price) 12,000

Debtors on 1^st April 2019 10,000

Goods received from H.O (invoice Price)132,000

Sales (cash)46,000

Sales (cr)100,000

Cash received from Debtors85,635

Discount allowed to Debtors 13,365

Expenses at the branch 6000

Remitences to H.O120,000

Debtors on 31^st march 20205,635

Cash in handon 31^st march 202015,000

It was further reported that a part of the stock was lost by fire (not covered by insurance) during the year whose value is to be ascertained and a provision should be made for discount to be allowed to debtors as on 31^st march, 2020 on the basis of years trend prompt payments.

Q.4What do departmental accounts mean? What are the objectives and advantages of preparing the departmental accounts? Also, explain the basis of allocation of expenses over various departments.

Q.5X Ltd. purchased the business of Y Ltd, for Rs. 90,000 payable in fully paid shares. X Ltd. Allotted equity shares of Rs. 10 each fully paid in satisfaction of claim by Y ltd. Show the necessary journal entries in the books of X ltd. assuming that:

a)Such shares are issued at par

b)Such shares are issued at a premium of 10%

c)Such shares are issued at a discount of 5%