Practice Test


1) Which of the following is true ?


2) For opening joint bank account ,in case of separate sets of books:


3) For purchase of plant from joint bank account ,in case separate sets of books are maintained ,the correct journal entry will be


4) For material supplied from own stock by any of the venturer,the correct journal entry will be: in case of separate sets of books)


5) A and B entered 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 are subscribed by the party. 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


6) A and B entered into a joint venture to underwrite the shares of K Ltd.K ltd make an equity issue of 2,00,000 equity shares .80%of the shares underwritten by the venture 1,60,000 shares are subscribed by the public. How many shares are to be subscribed by the venture ?


7) A , B and C are co-venturer.The profit sharing ratio between A and B is 3:2 and between B and C is 3:2. Find out the profit sharing ratio between A,B and C


8) A and B purchased a piece of land for Rs.20,000 and sold it for Rs.60,000 in 2005 . Originally A had contributed Rs.12,000 and B Rs.8,000.What will be the profit on venture


9) A and B entered into a joint venture profit sharing ratio between A and B is 3:2 .A purchased goods costing Rs.2,00,000.other expenses of A Rs.10,000. B sold the goods for Rs.1,80,000.remaining goods were taken over by B at Rs.20,000 amount of final remittance to be paid by B to A will be


10) A and B entered into a joint venture to construct a bridge. They did not open separate set of books .they shared profit & loss as 3:2.C contributed Rs.1,50,000 for purchase of materials .D paid wages amounting to Rs.80,000 expenses were paid as : C - 5,000 , D - 15,000 , C purchased one machine for Rs.20,000 machine was taken over by C for Rs.10,000 contract value of Rs.3,00,000 was received by D .What will be the profit on venture


11) 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 as 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.What will be the amount to be remitted by M to R as final settlement ?


12) 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 as 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.What will be the profit on venture ?


13) A and B entered into a joint venture profit sharing ratio between A and B is 3:2 .A purchased goods costing Rs.2,00,000.. B sold the goods 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


14) 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 the cost on consignment. the amount of bill will be ;


15) 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?


16) 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


17) If any stock is taken over by the venture , it will be treated as an :


18) which of the following is true ?


19) A and B enter into a joint venture profit sharing ratio between A and B is 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 entitle to get 5%commission on Sales .the profit on venture will be


20) Advice which of the statement is true


21) Which is the true statement ?


22) A and B were partners sharing profit and losses in the ratio of 3/5th and 2/5th respectively .A supplies goods to the value of Rs.80,000 and incurred 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 the behalf of the joint venture and realizes Rs.1,50,000.B entitled to a commission of 5% on the Sales .B settles his account by bank draft . Find out A's share of profit on venture ?


23) A and B were partners sharing profit and losses in the ratio of 3/5th and 2/5th respectively .A supplies goods to the value of Rs.60,000 and incurred 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 the behalf of the joint venture and realizes Rs.1,20,000.B entitled to a commission of 5% on the Sales .B settles his account by bank draft .How much amount will pay to A as final settlement ?


24) R and M entered into a joint venture to sell a consignment of biscuits .They agreed to share the profit and losses equally. R provides biscuits from stock Rs.10,000.He pays expenses worth Rs.1,000 and M incurred 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 M to R


25) R and M entered into a joint venture to sell a consignment of biscuits .They agreed to share the profit and losses equally .R provides biscuits from stock Rs.10,000.He pays expenses worth Rs.1,000 and M incurred 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.


26) A purchased 1,000 Kg of rice costing Rs.200 each .,Carriage 2,000, insurance 3,000.4/5th of the boxes were sold by B at Rs.250 per boxes. Remaining stock were taken over by B at cost,. The amount f stock taken over will be


27) goods costing Rs.10,000 destroyed by an accident , insurance claim nil


28) A and B were partners sharing profit and losses in the ratio of 3/5th and 2/5th respectively .A supplies goods to the value of Rs.60,000 and incurred expenses amounting Rs.6,000 . B supplies goods to the value of Rs.14,000 and his expenses amount to Rs.6,000 .B sells goods on the behalf of the joint venture and realizes Rs.1,00,000.B entitled to a commission of 5% on the Sales .B settles his account by bank draft .find out the profit on venture ?


29) A purchased goods costing Rs.1,00,000 .B sold goods at Rs.1,50,000 . Profit sharing ratio between A and B is equal . If same sets of books are maintained ,find out final remittance


30) A purchased goods costing Rs.2,00,000 .B sold 4/5th of goods at Rs.2,50,000 . Balance goods were taken by B at cost less 20% . If same sets of books are maintained ,find out profit on venture


31) A and B entered into a joint venture .They agreed to share the profit and losses 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 recovered in joint venture will be


32) A and B entered into a joint venture .They agreed to share the 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 1000 kg of wheat @ Rs.22/ kg. B sold 5000 kg of rice @ Rs.60/ kg.The profit on venture when same sets of books is maintained will be.


33) A and B entered into a joint venture .They agreed to share the 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 1000 kg of wheat @ Rs.70/ kg. B sold 5000 kg of rice @ Rs.60/ kg.The final remittance will be .


34) 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 amounted to be contributed by A


35) A and B enter into a joint venture by opening a joint bank account 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


36) If a venture draws a bill on his co-venture and if the drawer discounts the bills with the same sets of books maintained , the discounting charges to be borne by


37) A and B were partners sharing profit and losses in the ratio of 4/5th and 1/5th respectively .A supplies goods to the value of Rs.50,000 and incurred expenses amounting Rs.5,400 . B supplies goods to the value of Rs.14,000 and his expenses amount to Rs.800 .B sells goods on the behalf of the joint venture and realizes Rs.92,000.B entitled to a commission of 5% on the Sales .B settles his account by bank draft .find out final remittance ?


38) A and B were partners sharing profit and losses in the ratio of 4/5th and 1/5th respectively .A supplies goods to the value of Rs.50,000 and incurred expenses amounting Rs.5,400 . B supplies goods to the value of Rs.14,000 and his expenses amount to Rs.800 .B sells goods on the behalf of the joint venture and realizes Rs.92,000.B entitled to a commission of 5% on the Sales .B settles his account by bank draft .find out the profit on venture ?


39) In a joint venture .A contributes Rs,5000 & B contributes Rs.10,000.goods are purchased for Rs.11,200.Expenses to amount Rs.800.Sales amount to Rs.14,000 the remaining goods were taken over by b at Rs.400.A & B share profit & loss equally in the ratio of 1;2 respectively .As a final settlement ,how much A will receive ?


40) Which is the true statement ?


41) A & B enter into a venture sharing profit & loss in the ratio 2:3 . goods purchased for Rs.45,00.Expenses to amount Rs.13,500 and by B Rs.5,200 .B sold the goods for Rs.85,000 . Remaining goods were taken over by B at Rs.7,200..what will be the final remittance to be made by B to A


42) If separate sets of books is maintained and supplied and suppliers grant discounts at the time of making the payments for purchase of goods , such discount received will be treated as


43) If unsold goods costing Rs.20,000 is taken over by venture at Rs.15,000,the joint venture account will be credited by;


44) A & B enter into a venture sharing profit & loss in the ratio 2:3 . goods purchased for Rs.45,00.Expenses to amount Rs.13,500 and by B Rs.5,200 .B sold the goods for Rs.85,000 . Remaining goods were taken over by B at Rs.7,200..what is the profit


45) Which is the true statement ?


46) A and B enter into a joint venture for purchase and Sale of typewriter .A purchased typewriter costing Rs.1,00,000 ,printing expenses Rs.10,000 B sold it at 20% margin on selling price .The Sales value will be


47) the parties to joint venture is called


48) Joint Venture


49) Memorandum joint venture account is maintained in case of


50) the bank account maintains in the same set of books is called as


51) Which of the following is true ?


52) Which of the following is not true ?


53) Which of the following is true ?


54) Which of the following is not true ?


55) For purchase of goods by co-venturer in case of separate sets of books


56) for goods supplied from own stock by a co-venturer in case of separate sets of books


57) For stock of goods taken over by co-venturer in case of separate sets of books


58) For co-venture's capital contribution in case of separate sets of books


59) For distribution of profit in a separate sets of books


60) which of the following is not true


61) In memorandum joint venture account method, each co-venture records


62) memorandum joint venture accounts prepared


63) For sending cash to another co-venture in case of memorandum Joint venture account method


64) For purchase of goods for cash for joint venture in case of memorandum joint venture account method


65) For payment of joint venture expenses in case of memorandum joint venture account method


66) For sale of goods for cash in case of memorandum joint .venture account method


67) For recording another venture's share of profit in case of memorandum joint venture account method is


68) For recording own share of profit in case of memorandum joint venture account method is


69) loss of joint venture uninsured good is


70) bad debts incurred on account of joint venture sales are


71) There are two co-venture's X & Y ,X is recording all joint venture transaction in his books of account . Discount charges on discounting a bill receivable accepted by Y are debited to


72) there are two co-venturer's- X & Y ,X & Y are recording their own joint venture transaction in their respective books of account. in the books of X Discount charges on discounting a bill receivable accepted by Y are debited to


73) on supply of goods out of own stock for joint venture business


74) The share of profit of the co-venturer maintaining only his own transaction


75) The share of profit of the co-venturer maintaining all the joint venture transaction in his books is


76) closing stock with X Rs.26,400 ,with Y Rs.60,000 . In the books of X who is recording all joint Venture transaction


77) Which of the following is true ?


78) which of the following is not true


79) A & B enter into a joint venture to underwrite the share of X ltd ,to the extent of 80% X ltd make an equity issue of 1,00,000 equity shares of Rs.10 each ,80% of the issue are subscribed by the public .the profit .the profit sharing ratio between A & B is 3:2 .The balance shares not subscribed by the public are purchased by A & B in profit sharing ratio. How many shares to be purchased by the purchased by the co-venturers


80) A & B enter into a joint venture to underwrite the share of X ltd ,to the extent of 80% X ltd make an equity issue of 1,00,000 equity shares of Rs.10 each ,80% of the issue are subscribed by the public .the profit .the profit sharing ratio between A & B is 3:2 .The balance shares not subscribed by the public are purchased by A & B in profit sharing ratio. How many shares to be purchased by A


81) A & B purchased a piece of land for Rs.20,000 & sold it for Rs.60,000,originaly A had contributed Rs.12,000 & B had Rs.8,000.what will be A's share of profit on venture ?


82) A and B entered into a joint venture profit sharing ratio between A and B is 3:2 .A purchased goods costing Rs.2,00,000.B sold 95% goods for Rs.2,50,000.A is entitled to get 1% commission on purchase & B is entitled to get 5% commission on sales.A's share of profit on venture will be


83) A and B entered into a joint venture profit sharing ratio between A and B is 3:2 .A purchased goods costing Rs.2,00,000.B sold 95% goods for Rs.2,50,000.A is entitled to get 1% commission on purchase & B is entitled to get 5% commission on sales.what will be the final remittance


84) A and B entered into a joint venture profit sharing ratio between A and B is 3:2 .A purchased goods costing Rs.2,00,000.B sold 95% goods for Rs.2,50,000.A is entitled to get 1% commission on purchase & B is entitled to get 5% commission on sales remaining goods are taken over by B at 95% of cost .A's share of profit will be


85) A and B entered into a joint venture profit sharing ratio between A and B is 3:2 .A purchased goods costing Rs.2,00,000.B sold 95% goods for Rs.2,50,000.A is entitled to get 1% commission on purchase & B is entitled to get 5% commission on sales remaining goods are taken over by B at 95% of cost .what will be the final remittance


86) A and B entered into a joint venture profit sharing ratio between A and B is 3:2 .A purchased goods costing Rs.2,00,000.B sold 95% goods for Rs.2,50,000.A is entitled to get 1% commission on purchase & B is entitled to get 5% commission on sales remaining goods are stolen..A's share of profit will be


87) A and B entered into a joint venture profit sharing ratio between A and B is 3:2 .A purchased goods costing Rs.2,00,000.B sold 95% goods for Rs.2,50,000.A is entitled to get 1% commission on purchase & B is entitled to get 5% commission on sales remaining goods are stolen..what will be the final remittance


88) A and B entered into a joint venture profit sharing ratio between A and B is 3:2 .A purchased goods costing Rs.2,00,000.B sold 95% goods for Rs.2,50,000.A is entitled to get 1% commission on purchase & B is entitled to get 5% commission on sales remaining goods are stolen.A is entitle to get interest on capital @ 5% irrespective of utilization period .A's share of profit will be


89) A and B entered into a joint venture profit sharing ratio between A and B is 3:2 .A purchased goods costing Rs.2,00,000.B sold 95% goods for Rs.2,50,000.A is entitled to get 1% commission on purchase & B is entitled to get 5% commission on sales remaining goods are stolen.A is entitle to get interest on capital @ 5% irrespective of utilization period .what will be the final remittance


90) A and B entered into a joint venture profit sharing ratio between A and B is 3:2 .A purchased goods costing Rs.2,00,000.B sold 95% goods for Rs.2,50,000.A is entitled to get 1% commission on purchase & B is entitled to get 5% commission on sales A drew a bill on B for an amount equivalent to 80% of original cost of goods .what will be the final remittance


91) A and B entered into a joint venture profit sharing ratio between A and B is 3:2 .A purchased goods costing Rs.2,00,000.B sold 95% goods for Rs.2,50,000.A is entitled to get 1% commission on purchase & B is entitled to get 5% commission on sales A drew a bill on B for an amount equivalent to 80% of original cost of goods .A's share of profit will be


92) A purchased goods costing Rs.4,00,000 , B sold 4/5th of the goods for Rs.5,00,000.balance goods were taken over by B at cost less 20% ,if the same sets of books is maintained ,find out profit on venture?


93) A purchased goods costing Rs.4,00,000 , B sold 4/5th of the goods for Rs.5,60,000. unused material costing Rs.20,000 taken over by A at Rs.16000 is entitle to get 1% commission on purchase .b is entitle to get 2% on sales .Profit sharing ratio equal ,A's share of profit on venture will be


94) A & B enter into joint venture by opening a joint bank account contributing Rs.20,00,000 .The profit sharing ratio between A & B is 3;2 . How much amount to be contributed by A ?


95) A & B enter into joint venture sharing profit & losses equally ,. A purchased 200 kg of rice @ Rs.20 kg.brokerage paid Rs.400 , carriage paid Rs.600 . B sold 90% goods @ Rs.22kg.Balance rice were taken over by B at cost less 20% .the value of rice taken over to be recorded in joint venture will be


96) A & B enter into joint venture sharing profit & losses equally ,. A purchased 10,000 kg of rice @ Rs.50 per kg.brokerage .B purchased 2,000 kg of wheat @ Rs.60 per kg . A sold 2000 Kg of wheat @ Rs.70 per kg & B sold 10,000 Kg of rice @ Rs.60 per kg the profit on venture when same sets of books is maintained will be


97) A & B enter into joint venture sharing profit & losses equally ,. A purchased 10,000 kg of rice @ Rs.50 per kg.brokerage .B purchased 2,000 kg of wheat @ Rs.60 per kg . A sold 2000 Kg of wheat @ Rs.70 per kg & B sold 10,000 Kg of rice @ Rs.60 per kg the final remittance when same sets of books is maintained will be


98) In joint venture A contributes Rs.10,000 & B contributes Rs.20,000 ,Goods are purchased for Rs.22,400.Expenses amount to 1,600 . Sales amount to Rs.28,000.The remaining goods were taken by B at an agree price of Rs.800.A & B share profit & losses in the ratio of 1:2 respectively ,as a final settlement ,how much A will receive ?


99) A and B enter into a joint venture by opening a joint bank account contributing Rs.4,00,000.each. The expenses incurred on venture is exactly equal to Rs.4,00,000.Once the work is completed , contract money received by cheque Rs.4,00,000 and in shares Rs.1,00,000 .The shares are sold for Rs.80,000 what will be the profit


100) Goods costing Rs.10,000 are taken over by X at 20% less


101) A and B enter into a joint venture for purchase and Sale of typewriter .A purchased typewriter costing Rs.2,00,000 ,printing expenses Rs.20,000 repairing expenses Rs.20,000 . B sold it at 20% margin on selling price .The Sales value will be


102) Joint venture is not a _________ partnership.


103) When co-venturers decides to maintain a separate set of accounts books, they open a ___________ account with their bank.


104) The co-venturers agrees to contribute __________ required to the business.


105) A joint venture is a __________ partnership.


106) A debit balance of joint venture account indicates _________.


107) Expenses incurred by co-venturers are debited to _________ account.


108) A credit balance of joint venture account indicates ___________.


109) When unsold stock is taken over by co-venturers ___________ account is credited.


110) The co-venturers open a __________ account with heir bank.


111) The liability of co-venturers is _______.


112) Co venturers share profit of losses in the _________ ratio.


113) When other co- venturers supply goods, their personal account will be ________.


114) The joint venture does not have _________ name.


115) Joint venture runs for a ___________ duration.


116) In the absence of an agreement the profit of loss on joint venture will be __________ by co-venturers.


117) If some expenses are met directly by co-venturers ____________ account is debited.


118) When two of more persons undertook business activity for short period is known as ___________.


119) Unsold stock of joint venture taken over by co-venturer is credit to _______.


120) Initial capital contributed by co-venturer's A/c is debited to ________A/c.


121) Joint venture A/c is a ______.


122) Goods brought into the joint venture by co-venturer from his own stock is debited to ________.


123) Expenses of Joint venture business are debited to _______.


124) When Goods of joint venture are sold by agent, amount of sales is debited to _______ A/c.


125) Bills drawn for Joint venture and it is discounted by Co-venturer, the amount discount is ultimately debited to ______ A/c.


126) Joint venture may also be called as a _______ partnership.


127) Partners in ________ called co-venturers.


128) Joint venture is a _________ partnership.


129) Joint venture is a ________.


130) The persons entered into Joint venture are called _______.


131) Joint venture is a temporary partnership.


132) There is a difference between joint venture and partnership.


133) The relation between the co-venturers is that of principal and agent.


134) Joint venture is a permanent partnership.


135) The co-venturers always share the profits equally.


136) Joint venture is not a permanent partnership firm.


137) Joint is a non-trading concern.


138) Joint venture accounts can be maintained only in a separate set of books of account.


139) Liability of the coventurers is unlimited.


140) All expenses on the joint venture have to be always incurred from the joint bank account.


141) Debit balance of joint venture account indicates loss.


142) A joint venture comes to an end even after three months.


143) As soon as the particular venture is completed, joint venture comes to an end.


144) Joint venture does not have a firm name like a partnership.


145) Joint bank account is opened when separate set of books are kept.


146) A joint venture is a trading concern.


147) 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:


148) 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:


149) 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 1,80,000. 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:


150) 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?


151) 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.2,00,000. 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


152) If any Inventories is taken over by the venturer, it will be treated as an