AID15367: K and A of Nagpur entered into a joint venture to trade in silk goods in the ratio 2:1. On June 1, 2011, K bought goods worth Rs.7,200 and handed over half of the goods to A. On July 1, 2011, K bought another lot of goods costing Rs.2,400 and paid Rs.180 as expenses. On September 1, A purchased goods for Rs.4,500 and on the same day he sent to K a part of these goods costing Rs.1,800 and paid Rs.240 towards expenses. On the same day K remitted Rs.1,800 to A. The goods were invariably sold by the venturers at a uniform price of 33.33% above cost price excluding expenses. Each of the venturers collected cash proceeds on sales excepting an amount of Rs.250 owing to K by a customer and this was written off as a loss relating to the venture. In addition, goods costing Rs.600 in possession of A were destroyed by fire and an amount of Rs.500 was realised by him as compensation from the Insurance Company. On December 20, unsold goods costing Rs.1,500 (at cost) were lying with K. Of these, goods costing Rs.600 were taken by K for personal use and the balance was purchased by him at an agreed value of Rs.1,000. A disposed of all the goods with him on December 31, excepting some damaged goods costing Rs.300 which were written off as unsaleable.

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Q: K and A of Nagpur entered into a joint venture to trade in silk goods in the ratio 2:1. On June 1, 2011, K bought goods worth Rs.7,200 and handed over half of the goods to A. On July 1, 2011, K bought another lot of goods costing Rs.2,400 and paid Rs.180 as expenses. On September 1, A purchased goods for Rs.4,500 and on the same day he sent to K a part of these goods costing Rs.1,800 and paid Rs.240 towards expenses. On the same day K remitted Rs.1,800 to A. The goods were invariably sold by the venturers at a uniform price of 33.33% above cost price excluding expenses. Each of the venturers collected cash proceeds on sales excepting an amount of Rs.250 owing to K by a customer and this was written off as a loss relating to the venture. In addition, goods costing Rs.600 in possession of A were destroyed by fire and an amount of Rs.500 was realised by him as compensation from the Insurance Company. On December 20, unsold goods costing Rs.1,500 (at cost) were lying with K. Of these, goods costing Rs.600 were taken by K for personal use and the balance was purchased by him at an agreed value of Rs.1,000. A disposed of all the goods with him on December 31, excepting some damaged goods costing Rs.300 which were written off as unsaleable.

Prepare a Memorandum Joint Venture Account to find the amount of profit or loss.

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