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QN1. M and N enter into a Joint venture where M supplies goods worth Rs.6,000 and spends Rs.100 on various expenses. N sells the entire lot for Rs.7,500 meeting selling expenses amounting to Rs.200. Profit sharing ratio is equal. N remits to M the amount due. The amount of remittance will be:
(a) Rs.6,700
(b) Rs.7,300
(c) Rs.6,400
(d) Rs.6,100

View Answer

Answer: (a) Rs.6,700

QN2. A purchased goods costing Rs.42,500. B sold goods costing Rs.40,000 at Rs.50,000. Balance goods were taken over by A at same gross profit percentage as in case of sale. The amount of goods taken over will be:
(a) Rs.3,125
(b) Rs.2,500
(c) Rs.3,000
(d) None

View Answer

Answer: (a) Rs.3,125

QN3. Which of the following statement is true?
(a) Only one venturer bears the risk
(b) Only one venturer can sell the goods
(c) Only one venturer can purchase the goods
(d) In joint venture, provisions of partnership act applies

View Answer

Answer: (d) In joint venture, provisions of partnership act applies

QN4. Which of the following statement is true:
(a) In case of separate sets of books method of Joint Venture, co-venturer’s contribution of
goods is debited in Joint Bank A/c
(b) Co-venturer’s contribution in cash is debited in Venturer’s personal account
(c) Discount on discounting of B/R is debited to Venturer’s personal account
(d) Contract money received is credited to Joint Venture Account

View Answer

Answer: (d) Contract money received is credited to Joint Venture Account

QN5. For opening Joint Bank account, in case of separate sets of books:
(a) Venture A/c will be debited and Venturers A/c will be credited
(b) Joint Bank A/c is debited and Venturers Capital A/c is credited
(c) Joint Venture A/c is debited and Joint Bank A/c will be credited
(d) Joint Bank A/c will be debited and Joint Venture A/c will be credited

View Answer

Answer: (b) Joint Bank A/c is debited and Venturers Capital A/c is credited

QN6. For purchase of plant from Joint Bank Account, in case separate sets of books are maintained, the correct journal entry will be:
(a) Plant A/c will be debited and Joint Bank A/c will be credited
(b) Joint Venture A/c will be debited and Joint Bank A/c will be credited
(c) Plant A/c will be debited and Venturers Capital A/c will be credited
(d) Joint Venture A/c will be debited and Plant A/c will be credited

View Answer

Answer: (b) Joint Venture A/c will be debited and Joint Bank A/c will be credited

QN7. For material supplied from own Inventories by any of the venturer, the correct journal entry will be: (In case of separate sets of books)
(a) Joint Venture A/c will be debited and Venturers Capital A/c will be credited
(b) Joint Venture A/c will be debited and Joint Bank A/c will be credited
(c) Joint Venture A/c will be debited and Material A/c will be credited
(d) Joint Bank A/c will be debited and Joint Venture A/c will be credited

View Answer

Answer: (a) Joint Venture A/c will be debited and Venturers Capital A/c will be credited

QN8. A and B enter into a joint venture to underwrite the shares of K Ltd. K Ltd make an equity issue of 1,00,000 equity shares of Rs.10 each. 80% of the issue was subscribed by the public. The profit sharing ratio between A and B is 3:2. The balance shares not subscribed by the public, purchased by A and B in profit sharing ratio. How many shares to be purchased by A.
(a) 80,000 shares
(b) 72,000 shares
(c) 12,000 shares
(d) 8,000 shares

View Answer

Answer: (c) 12,000 shares

QN9. A and B enter into a joint venture to underwrite shares of K Ltd. K Ltd make an equity issue of 2,00,000 equity shares. 80% of the shares underwritten by the venturer. 1,60,000 shares are subscribed by the public. How many shares are to be subscribed by the venturer?
(a) Nil
(b) 32,000 shares
(c) 36,000 shares
(d) 40,000 shares

View Answer

Answer: (b) 32,000 shares

QN10. A and B purchased a piece of land for Rs.20,000 and sold it for Rs.60,000 in 2011. Originally A had contributed Rs.12,000 and B Rs.8,000. What will be the profit on venture?
(a) Rs.40,000
(b) Rs.20,000
(c) Rs.60,000
(d) Nil

View Answer

Answer: (a) Rs.40,000

QN11.. A and B enter into a joint venture sharing profit and losses in the ratio 2:1. A purchased goods costing Rs.2,00,000. B sold the goods for Rs.2,50,000. A is entitled to get 1% commission on purchase and B is entitled to get 5% commission on sales. The profit on venture will be:
(a) Rs.35,500
(b) Rs.36,000
(c) Rs.34,000
(d) Rs.38,000

View Answer

Answer: (a) Rs.35,500

QN12. P and Q enter into a Joint Venture sharing profits and losses in the ratio 3:2. P purchased goods costing Rs.2,00,000. Other expenses of P Rs.10,000. Q sold the goods for 180,000. Remaining goods were taken over by Q at Rs.20,000. The amount of final remittance to be paid by Q to P will be:
(a) Rs.2,15,000
(b) Rs.2,04,000
(c) Rs.2,10,000
(d) None

View Answer

Answer: (b) Rs.2,04,000

QN13. C and D entered into a Joint Venture to construct a bridge. They did not open separate set of books. They shared profits and losses as 3:2. C contributed Rs.1,50,000 for purchase of materials. D paid wages amounting to Rs.80,000. Other expenses were paid as:
C – Rs.5,000 D – Rs.15,000 C purchased one machine for Rs.20,000. The machine was taken over by C for Rs.10,000. Total contract value of Rs.3,00,000 was received by D. What will be the profit on venture?
(a) Rs.30,000
(b) Rs.40,000
(c) Rs.20,000
(d) Rs.15,000

View Answer

Answer: (b) Rs.40,000

QN14. R and M entered into a joint venture to purchase and sell new year gifts. They agreed to share the profit and losses equally. R purchased goods worth Rs.1,00,000 and spent Rs.10,000 in sending the goods to M. He also paid Rs.5,000 for insurance. M spent Rs.10,000 as selling expenses and sold goods for Rs.2,00,000. Remaining goods were taken over by him at Rs.5000. What will be the amount to be remitted by M to R as final settlement?
(a) Rs.1,55,000
(b) Rs.1,50,000
(c) Rs.11,5000
(d) Rs.80,000

View Answer

Answer: (a) Rs.1,55,000

QN15. R and M entered into a joint venture to purchase and sell new year gifts. They agreed to share the profit and losses equally. R purchased goods worth Rs.100,000 and spent Rs.10,000 in sending the goods to M. He also paid Rs.5,000 for insurance. M spent Rs.10,000 as selling expenses and sold goods for Rs.2,00,000. Remaining goods were taken over by him at Rs.5,000. Find out profit on venture?
(a) Rs.70,000
(b) Rs.75,000
(c) Rs.80,000
(d) Rs.85,000

View Answer

Answer: (c) Rs.80,000

QN16. A and B enter into a joint venture sharing profit and losses in the ratio 3:2. A will purchase goods and B will affect the sale. A purchase goods costing Rs.200,000. B sold it for Rs.3,00,000. The venture is terminated after 3 months. A is entitled to get 10% interest on capital invested irrespective of utilization period. The amount of interest received by A will be
(a) Rs.20,000
(b) Rs.10,000
(c) Rs.15,000
(d) Rs.25,000

View Answer

Answer: (a) Rs.20,000

QN17. A bought goods of the value of Rs.10,000 and consigned them to B to be sold by them on a joint venture, profits being divided equally. A draws a bill on B for an amount equivalent to 80% of cost on consignment. The amount of bill will be:
(a) Rs.10,000
(b) Rs.8,000
(c) Rs.6,000
(d) Rs.9,000

View Answer

Answer: (b) Rs.8,000

QN18. A bought goods of the value of Rs.10,000 and consigned them to B to be sold by them on a joint venture, profits being divided equally, A paid Rs.1,000 for freight and insurance. A draws a bill on B for Rs.10,000. A got it discounted at Rs.9,500. B sold the goods for Rs.15,000. Commission payable to B, Rs.500. Find out the profit on venture?
(a) Rs.3,000
(b) Rs.3,500
(c) Rs.4,000
(d) Rs.3,200

View Answer

Answer: (a) Rs.3,000

QN19. A bought goods of the value of Rs.10,000 and consigned them to B to be sold by them on a joint venture, profits being divided equally, A paid Rs.1,000 for freight and insurance. A draws a bill on B for Rs.10,000. A got it discounted at Rs.9,500. B sold the goods for Rs.15,000. Commission payable to B, Rs.500. The amount to be remitted by B to A will be:
(a) Rs.12,500
(b) Rs.3,000
(c) Rs.14,500
(d) Rs.13,500

View Answer

Answer: (b) Rs.3,000

QN20. If any Inventories is taken over by the venturer, it will be treated as an:
(a) Income of the joint venture, hence credited to Joint Venture Account
(b) Expenses of Joint Venture, hence debited to Joint Venture Account
(c) To be ignored as Joint Venture Transaction
(d) It will be treated in the personal book of the venturer and not in the books of Joint Venture.

View Answer

Answer: (a) Income of the joint venture, hence credited to Joint Venture Account

QN21. Advise which of the statement is true:
(a) The Joint Venture can be formed by a single person only.
(b) A legal deed should be drafted before forming Joint Venture.
(c) The profit to be shared between the venturer in agreed ratio
(d) Joint Venture follows going concern concept.

View Answer

Answer: (c) The profit to be shared between the venturer in agreed ratio

QN22. A and B were partners in a joint venture sharing profits and losses in the proportion of 3/5th and 2/5th respectively. A supplies goods to the value of Rs.80,000 and incurs expenses amounting Rs.6,000. B supplies goods to the value of Rs.14,000 and his expenses amount to Rs.2,000. B sells goods on behalf of the joint venture and realizes Rs.1,50,000. B entitled to a commission of 5% on sales. B settles his account by bank draft. Find out A’s share of profit on venture?
(a) Rs.24,300
(b) Rs.25,000
(c) Rs.26,000
(d) Rs.20,300

View Answer

Answer: (a) Rs.24,300

QN23. A and B were partners in a joint venture sharing profits and losses in the proportion of 3/5th and 2/5th respectively. A supplies goods to the value of Rs.60,000 and incurs expenses amounting Rs.6,000. B supplies goods to the value of Rs.16,000 and his expenses amount to Rs.3,000. B sells goods on behalf of the joint venture and realizes Rs.1,20,000. B entitled to a commission of 5% on sales. B settles his account by bank draft. How much amount, B will pay to A as final settlement?
(a) Rs.83,400
(b) Rs.93,200
(c) Rs.80,000
(d) Rs.66,000

View Answer

Answer: (a) Rs.83,400

QN24. A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provides biscuits from Inventories Rs.10,000. He pays expenses amounting to Rs.1,000. V incurs further expenses on carriage Rs.1,000. He receives cash for sales Rs.15,000. He also takes over goods to the value of Rs.2,000. What will be the amount to be remitted by V to A?
(a) Rs.13,500
(b) Rs.15,000
(c) Rs.11,000
(d) Rs.10,000

View Answer

Answer: (a) Rs.13,500

QN25. A and V enter into a joint venture to sell a consignment of biscuits sharing profits and losses equally. A provides biscuits from Inventories Rs.10,000. He pays expenses amounting to Rs.1,000. V incurs further expenses on carriage Rs.1,000. He receives cash for sales Rs.15,000. He also takes over goods to the value of Rs.2,000. Find out profit on venture?
(a) Rs.3,000
(b) Rs.5,000
(c) Rs.6,000
(d) Rs.3,500

View Answer

Answer: (b) Rs.5,000

QN26. A purchased 1000 kg of rice costing Rs.200 per kg. Paid carriage Rs.2,000 and insurance Rs.3,000. 4/5th of the same were sold by B at Rs.250 per kg. Remaining Inventories were taken over by B at cost. The amount of Inventories taken over will be:
(a) Rs.40,000
(b) Rs.41,000
(c) Rs.50,000
(d) Rs.50,200

View Answer

Answer: (b) Rs.41,000

QN27. Goods costing Rs.10,000 destroyed by an accident, insurance claim nil.
(a) Rs.10000 will be credited to Joint Venture Account.
(b) No Entry will be made in the books of Joint Venture
(c) Rs.10000 will be debited in Joint Venture Account as Loss
(d) Rs.8000 will be credited in Joint Venture Account

View Answer

Answer: (b) No Entry will be made in the books of Joint Venture

QN28. A and B were partners in a joint venture sharing profits and losses in the proportion of 3/5th and 2/5th respectively. A supplies goods to the value of Rs.60,000 and incurs expenses amounting s.6,000. B supplies goods to the value of Rs.14,000 and his expenses amount to Rs.1,000. B sells goods on behalf of the joint venture and realizes Rs.1,00,000. B entitled to a commission of 5% on sales. B settles his account by bank draft. Find out the profit on venture?
(a) Rs.14,400
(b) Rs.14,000
(c) Rs.13,000
(d) Rs.13,200

View Answer

Answer: (b) Rs.14,000

QN29. A purchased goods costing Rs.1,00,000. B sold the goods for Rs.1,50,000. Profit sharing ratio between A and B equal. If same sets of books is maintained, what will be the final remittance?
(a) B will remit Rs.1,25,000 to A
(b) B will remit Rs.1,50,000 to A
(c) A will remit Rs.1,00,000 to B
(d) B will remit Rs.25,000 to A

View Answer

Answer: (a) B will remit Rs.1,25,000 to A

QN30. A purchased goods costing Rs.2,00,000, B sold 4/5th of the goods for Rs.2,50,000. Balance goods were taken over by B at cost less 20%. If same sets of books is maintained, find out profit on venture?
(a) Rs.82,000
(b) Rs.90,000
(c) Rs.50,000
(d) None of these

View Answer

Answer: (a) Rs.82,000

QN31. A purchased goods costing Rs.2,00,000. B sold the goods for Rs.2,80,000. Unused material costing Rs.10,000 taken over by A at Rs.8,000. A is entitled to get 1% commission on purchase. B is entitled to get 2% commission on sales. Profit sharing ratio equal. A’s share of profit on venture will be:
(a) Rs.40,000
(b) Rs.40,400
(c) Rs.40,600
(d) Rs.40,200

View Answer

Answer: (d) Rs.40,200

QN32. A and B enter into joint venture sharing profit and loss equally. A purchased 100 kg of rice @ Rs.20/kg. Brokerage paid Rs.200, carriage paid Rs.300. B sold 90 kg of rice @ Rs.22/kg. Balance rice were taken over by B at cost. The value of rice taken over to be recorded in joint venture will be:
(a) Rs.200
(b) Rs.250
(c) Rs.230
(d) Rs.220

View Answer

Answer: (b) Rs.250

QN33. A and B enter into a joint venture sharing profit and losses equally. A purchased 5,000 kg of rice @ Rs.50/kg. B purchased 1,000 kg of wheat @ Rs.60/kg. A sold 1,000 kg of wheat @ Rs.70/ kg and B sold 5,000 kg of rice @ Rs.60/kg. The profit on venture when same sets of books is maintained will be:
(a) Rs.1,10,000
(b) Rs.1,00,000
(c) Rs.1,20,000
(d) Rs.60,000

View Answer

Answer: (d) Rs.60,000

QN34. A and B enter into a joint venture sharing profits and losses equally. A purchased 5000 kg of rice @ Rs.50/kg. B purchased 1,000 kg of wheat @ Rs.60/kg. A sold 1,000 kg of wheat @ Rs.70/ kg and B sold 5,000 kg of rice @ Rs.60/kg. What will be the final remittance?
(a) B will remit Rs.2,10,000 to A
(b) A will remit Rs.2,10,000 to B
(c) A will remit Rs.2,00,000 to B
(d) B will remit Rs.1,80,000 to A

View Answer

Answer: (a) B will remit Rs.2,10,000 to A

QN35. A and B enter into a Joint Venture by opening a joint bank account contributing Rs.10,00,000. The profit sharing ratio between A and B is 3:2. How much amount to be contributed by A?
(a) Rs.6,00,000
(b) Rs.4,00,000
(c) Rs.3,00,000
(d) Rs.5,00,000

View Answer

Answer: (a) Rs.6,00,000

QN36. A, B and C are co-venturer. The relative Profit sharing ratio between A and B is 3:2 and between B and C is also 3:2. Find out the profit sharing ratio between A, B and C.
(a) 3:2:2
(b) 9:6:4
(c) 4:3:2
(d) 3:2:1

View Answer

Answer: (b) 9:6:4

QN37. A and B entered into a joint venture. They opened a joint bank account by contributing Rs.2,00,000 each. The expenses incurred on venture is exactly equal to Rs.2,00,000. Once the work is completed, contract money received by cheque Rs.4,00,000 and in shares Rs.50,000. The shares are sold for Rs.40,000. What will be the profit on venture?
(a) Rs.2,50,000
(b) Rs.2,40,000
(c) Rs.4,40,000
(d) Rs.4,50,000

View Answer

Answer: (b) Rs.2,40,000

QN38. If a venturer draws a bill on his co-venturer and if the drawer discounts the bill with same sets of books maintained, the discounting charges will be borne by:
(a) The drawer of the bill
(b) The drawee of the bill
(c) The discounting charges will be recorded in memorandum joint venture account
(d) The discounting charges will be borne by bank

View Answer

Answer: (c) The discounting charges will be recorded in memorandum joint venture account

QN39. Which of the following statement is not true?
(a) Joint venture is a going concern
(b) Joint venture is terminable in nature
(c) Joint venture does not follow accrual basis of accounting
(d) The co-venturer shares the profit in agreed ratio

View Answer

Answer: (a) Joint venture is a going concern

QN40. A and B were partners in a joint venture sharing profits and losses in the proportion of 4/5th and 1/5th respectively. A supplies goods to the value of Rs.50,000 and incurs expenses amounting to Rs.5,400. B supplies goods to the value of Rs.14,000 and his expense amount to Rs.800. B sells goods on behalf of the joint venture and realizes Rs.92,000. B is entitled to a commission of 5 percent on sales. B settles his account by bank draft. What will be the final remittance?
(a) B will remit Rs.69,160 to A
(b) A will remit Rs.69,160 to B
(c) A will remit Rs.69,000 to B
(d) B will remit Rs.69,000 to A

View Answer

Answer: (a) B will remit Rs.69,160 to A

QN41. A and B were partners in a joint venture sharing profits and losses in the proportion of 4/5th and 1/5th respectively. A supplies goods to the value of Rs.50,000 and incurs expenses amounting to Rs.5,400. B supplies goods to the value of Rs.14,000 and his expense amount to Rs.800. B sells goods on behalf of the joint venture and realizes Rs.92,000. B is entitled to a commission of 5 percent on sales. B settles his account by bank draft. What will be the profit on venture?
(a) Rs.17,200
(b) Rs.17,000
(c) Rs.18,000
(d) Rs.18,200

View Answer

Answer: (a) Rs.17,200

QN42. In a Joint venture A contributes Rs.5,000 and B contributes Rs.10,000. Goods are purchased for Rs.11,200. Expenses amount to Rs.800. Sales amount to Rs.14,000 the remaining goods were taken by B at an agree price of Rs.400. A and B share profit and losses in the ratio of 1:2 respectively. As a final settlement, how much A will receive?
(a) Rs.5,800
(b) Rs.6,000
(c) Rs.5,000
(d) Rs.10,800

View Answer

Answer: (a) Rs.5,800

QN43. Which of the following statement is true?
(a) There is no difference between Joint Venture and Partnership
(b) Consignment and Joint Venture is same
(c) There is no separate act for Joint Venture
(d) In case of Joint Venture, the number of third party is one only.

View Answer

Answer: (c) There is no separate act for Joint Venture

QN44. A and B enter into a joint venture sharing profits and losses in the ratio 2:3. Goods purchased by A for Rs.45,000. Expenses incurred by A Rs.13,500 and by B Rs.5,200. B sold the goods for Rs. 85,000. Remaining Inventories taken over by B at Rs.7,200. What will be the final remittance to be made by B to A:
(a) Rs.69,900
(b) Rs.11,400
(c) Rs.17,100
(d) Rs.7,200

View Answer

Answer: (a) Rs.69,900

QN45. If separate sets of books is maintained and suppliers grant discount at the time of making the payment for purchase of goods, such discount received will be treated as:
(a) Income of Joint Venture, hence credited to Joint Venture A/c
(b) Will be credited to Joint Bank A/c
(c) Will be credited to Co-venturer’s Capital A/c
(d) Will be ignored from the books

View Answer

Answer: (a) Income of Joint Venture, hence credited to Joint Venture A/c

QN46. If unsold goods costing Rs.20,000 is taken over by Venturer at Rs.15,000, the Joint Venture A/c will be credited by:
(a) Rs.20,000
(b) Rs.15,000
(c) Rs.5,000
(d) Nil

View Answer

Answer: (b) Rs.15,000

QN47. A and B enter into a venture sharing profits and losses in the ratio 2:3. Goods purchased by A for Rs.45,000. Expenses incurred by A, Rs.13,500 and by B Rs.5,200. B sold the goods for Rs. 85,000. Remaining Inventories taken over by B at Rs.7,200. The profit on venture will be:
(a) Rs.28,500
(b) Rs.21,300
(c) Rs.35,700
(d) Rs.9,800

View Answer

Answer: (a) Rs.28,500

QN48. State which of the statement is true?
(a) Memorandum Joint Venture Account is prepared to find out profit on venture
(b) Memorandum Joint Venture Account is prepared to find out amount due from
co-venturer
(c) Memorandum Joint Venture Account is prepared when separate sets of books is
maintained
(d) In Memorandum Joint Venture Account only one venturer’s transaction is recorded

View Answer

Answer: (a) Memorandum Joint Venture Account is prepared to find out profit on venture

QN49. A and B enter into a joint venture for purchase and sale of Typewriter. A purchased old Typewriter costing Rs.1,00,000. Repairing expenses Rs.10,000, ink expenses Rs.10,000. B sold it at 20% margin on selling price. The sales value will be:
(a) Rs.1,25,000
(b) Rs.1,50,000
(c) Rs.1,00,000
(d) Rs.1,40,000

View Answer

Answer: (b) Rs.1,50,000

QN50. Which of the following statement is true?
(a) When separate set of books is maintained, expenses paid by venturer will be credited to joint bank account.
(b) When separate set of books is maintained, expenses paid by venturer will be credited to venturer’s capital account.
(c) When separate set of books is maintained, expenses paid by venturer will be credited to Joint venture account.
(d) When separate set of books is maintained, expenses paid by venturer will be credited to Outstanding Expenses Account.

View Answer

Answer: (b) When separate set of books is maintained, expenses paid by venturer will be credited to venturer’s capital account.