Question

Question No.3
G and B jointly underwrite and place in the market 25,000 shares of Rs. 20 each. It was agreed with the
company that they would be allotted 1,000 shares as fully paid towards remuneration. Their profit sharing
ratio is 3.2. Applications were received from the public only for 22,500 shares, G paid Rs. 4,000 for postage
and advertisement in addition to 60% of amount required to take up the short subscription. B financed the
balance amount. All the shares including the allotted for remuneration were sold. G sold 1500 shares for
Rs. 35,000 and B sold balance shares at Rs. 24 per share. B incurred expenses amounting to Rs. 2,000. Sale
proceeds were retained individually. Show the necessary accounts in the books of venturers, which were
separately stared for this purpose, assuming the account was settled through Joint Bank Account.
[Aus: Profit on Joint venture Rs. 27,000
​

Answer 1

profit = 16200+10800 after selling the share 1500 for 35000 and sold by B 48000 (2000× 24)