Joint Venture and Consignment Accounts

Bisi and Femi entered into a joint venture to trade in timber, agreeing to share profits and losses in the ratio $3:2$ respectively. Under the Memorandum Joint Venture method, Bisi supplied goods valued at $\text{N}120,000$ and paid transport expenses of $\text{N}10,000$. Femi paid storage expenses of $\text{N}5,000$ and sold all the timber for $\text{N}180,000$. Femi was entitled to a selling commission of $5\%$ on total sales. What amount is payable by Femi to Bisi on final settlement?

Under the separate set of books method of accounting for a joint venture, which of the following is the correct double entry to record goods supplied directly by a co-venturer from their existing business stock?

Two merchants enter into a temporary agreement to pool funds, purchase a bulk shipment of seasonal produce, sell the goods, and share the net profit equally, with the agreement terminating automatically upon completion of the transaction. Which of the following fundamental accounting features distinguishes this business arrangement from a traditional partnership?

Folake dispatched a batch of merchandise to Ibrahim to be sold on her behalf. Prior to the sale of the merchandise, an accounting audit was conducted at year-end. Which of the following statements correctly describes the legal relationship between Folake and Ibrahim and the ownership status of the unsold merchandise?

Tunde & Sons dispatched 400 crates of beverages to Obinna Enterprises to be sold on a commission basis under a standard consignment arrangement. Before Obinna Enterprises made any sales, the business went into liquidation due to insolvency. In accounting and law, how should the liquidator treat the 400 unsold crates of beverages?

Match each consignment accounting document, commission, or account term on the left with its correct definition or description on the right.

Kolawole dispatched 100 cartons of footwear to Danladi to be sold on a commission basis. Accompanying the shipment was a document detailing the description, quantity, and estimated selling price of the merchandise to serve as a guide for the consignee. Which document was sent by the consignor along with the goods?

Which of the following statements correctly describes the legal status and relationship of participants in a joint venture arrangement?

Emeka and Chidi entered into a joint venture sharing profits and losses equally, maintaining no separate set of books. Emeka supplied goods valued at $\text{N}60,000$ and paid freight charges of $\text{N}4,000$. Chidi supplied goods valued at $\text{N}40,000$ and paid selling expenses of $\text{N}6,000$. Chidi sold all the goods for $\text{N}140,000$ and collected the full proceeds. What amount will Chidi pay to Emeka in final settlement?

Chief Adeleke consigned goods to Kalu to sell on commission. Kalu sold goods worth ₦750,000 for cash and ₦560,000 on credit. Under the agreement, Kalu receives a 5% ordinary commission on total sales and a 2.5% del-credere commission on credit sales. Kalu paid ₦25,000 for handling expenses and sustained a bad debt loss of ₦15,000 from a credit customer. What is the net amount remitted by Kalu to Chief Adeleke?

Fatima dispatched $800$ cartons of cosmetics costing $\text{₦}10,000$ per carton to Ngozi on consignment. Fatima paid freight and insurance of $\text{₦}400,000$. Ngozi incurred carriage inwards of $\text{₦}160,000$, godown rent of $\text{₦}100,000$, and selling expenses of $\text{₦}200,000$. At the end of the period, Ngozi reported that $200$ cartons remained unsold. What is the value of the unsold consignment stock?

Emeka consigned $100$ crates of fruit juice costing $\text{₦}4,000$ per crate to Nkechi. Emeka paid carriage charges of $\text{₦}20,000$. Nkechi received the consignment and paid godown rent of $\text{₦}10,000$ and selling expenses of $\text{₦}15,000$. If $20$ crates remained unsold at the end of the period, what is the value of the unsold consignment stock?

Tunde consigned 500 packages of merchandise to Emeka to sell on commission. The commission terms agreed upon in the consignment contract are as follows:
- Ordinary Commission: $5\%$ on total gross sales.
- Del-Credere Commission: $2.5\%$ on credit sales.
- Overriding Commission: $10\%$ on any excess selling price realized above the benchmark price of $\text{₦}1,800$ per package.

During the trading period, Emeka reported the following sales transactions:
- $200$ packages sold for cash at $\text{₦}2,000$ per package.
- $150$ packages sold on credit at $\text{₦}2,200$ per package.
- $50$ packages sold for cash at $\text{₦}1,800$ per package.

What is the total commission earned by Emeka in Naira ($\text{₦}$)?

Folake Enterprises consigned goods to Audu. During the trading period, Audu generated cash sales of ₦400,000 and credit sales of ₦600,000. A credit customer defaulted, resulting in bad debts of ₦30,000. Under the terms of the agreement, Audu receives an ordinary commission of 5% on total sales and a del-credere commission of 3% on credit sales. If Audu also incurred selling expenses of ₦20,000, what is the net amount payable by Audu to Folake Enterprises?

Alhaji Bello consigned $1,000$ packages of goods to Chidi with instructions to sell them at a minimum benchmark price of ₦$1,500$ per package. Chidi sold $400$ packages for cash at ₦$1,800$ each and $600$ packages on credit at ₦$2,000$ each. The consignment agreement stipulates an ordinary commission of $5\%$ on total sales, a del-credere commission of $2.5\%$ on credit sales, and an overriding commission of $10\%$ on any surplus sales value realized above the minimum benchmark price. What is the total commission payable to Chidi in Naira?

Kofi consigned $500$ units of solar lanterns costing $\text{₦}12,000$ per unit to Aminu. Kofi paid freight of $\text{₦}300,000$ and loading charges of $\text{₦}100,000$. Aminu paid clearing charges of $\text{₦}200,000$, warehouse rent of $\text{₦}150,000$, and sales commission of $\text{₦}100,000$. At the end of the trading period, Aminu reported that $400$ units were sold. What is the value of the unsold consignment stock?

Nkem Enterprises consigned $800$ cases of merchandise to Babatunde. Babatunde sold $500$ cases for cash at ₦$2,000$ per case and $300$ cases on credit at ₦$2,200$ per case. The contract specified three types of commission: an ordinary commission of $5\%$ on total sales, a del-credere commission of $2.5\%$ on credit sales, and an overriding commission of $10\%$ on total sales value achieved in excess of the benchmark price of ₦$1,800$ per case. During the period, a credit customer defaulted, incurring a bad debt of ₦$50,000$. What is the total commission earned by Babatunde?

Danladi Enterprises consigned $200$ crates of fruit juice to Segun at an agreed benchmark selling price of ₦$5,000$ per crate. Segun's terms of remuneration comprise an ordinary commission of $5\%$ on total sales, a del-credere commission of $2.5\%$ on credit sales, and an overriding commission of $10\%$ on any surplus sales revenue realized above the benchmark price. During the period, Segun sold $120$ crates for cash and $80$ crates on credit, all at a uniform price of ₦$6,000$ per crate. What is the total commission payable to Segun?

Suleiman Merchants consigned $500$ crates of goods to Danjuma Traders to sell on their behalf. The agreed commission structure was: an ordinary commission of $5\%$ on total sales, an overriding commission of $15\%$ on any excess sales proceeds realized above the target price of ₦$4,000$ per crate, and a del-credere commission of $2.5\%$ on credit sales. During the consignment period, Danjuma Traders sold $300$ crates for cash at ₦$4,500$ per crate and $150$ crates on credit at ₦$4,800$ per crate. A credit customer subsequently defaulted, creating a bad debt of ₦$96,000$. What is the total commission in Naira (₦) earned by Danjuma Traders?

Match each consignment transaction recorded in the consignor's books on the left with its correct double-entry posting on the right: