Examkin

Soru

Zorluk: OrtaJoint Venture Accounting: Separate Set of Books Method

Kofi and Ama entered into a joint venture sharing profits and losses in the ratio 3:23:2. A separate set of books is maintained for the venture. The venturers contributed $15,000\$15,000 and $10,000\$10,000 respectively into a Joint Bank Account. The venture transactions were as follows:

- Purchases paid via Joint Bank: $18,000\$18,000
- Freight expenses paid directly by Kofi: $1,200\$1,200
- Sales proceeds deposited into Joint Bank: $28,000\$28,000
- Unsold inventory taken over by Ama: $2,200\$2,200

What is Ama's share of the profit from the joint venture?

  1. $4,400\$4,400Cevap
  2. B
    $6,600\$6,600
  3. C
    $3,520\$3,520
  4. D
    $2,640\$2,640

Cevap

Ama's share of the profit is $4,400\$4,400.
The value of $4,400\$4,400 correctly reflects Ama's 25\frac{2}{5} share of the total net profit of $11,000\$11,000, derived from total credit entries of $30,200\$30,200 (sales of $28,000\$28,000 plus unsold inventory taken over of $2,200\$2,200) minus total debit entries of $19,200\$19,200 (purchases of $18,000\$18,000 plus freight expenses of $1,200\$1,200).

Adım Adım Çözüm

1
Calculate total credit items in the Joint Venture Account
Sales proceeds ($28,000\$28,000) + Unsold inventory taken over by Ama ($2,200\$2,200) = $30,200\$30,200
Sales and inventory taken over by co-venturers represent income/gains and are credited to the Joint Venture Account.
2
Calculate total debit items in the Joint Venture Account
Purchases ($18,000\$18,000) + Freight paid by Kofi ($1,200\$1,200) = $19,200\$19,200
Purchases and expenses incurred for the joint venture are debited to the Joint Venture Account.
3
Determine total net profit of the joint venture
Total Credits ($30,200\$30,200) - Total Debits ($19,200\$19,200) = $11,000\$11,000
Net profit is the excess of credit side totals over debit side totals.
4
Apportion net profit to Ama based on profit-sharing ratio
$11,000×23+2=$11,000×25=$4,400\$11,000 \times \frac{2}{3+2} = \$11,000 \times \frac{2}{5} = \$4,400
The profit-sharing ratio between Kofi and Ama is 3:23:2, giving Ama a 25\frac{2}{5} fraction of the total profit.

Anahtar Kavram

Joint Venture Accounting under Separate Set of Books Method
Tahmini Süre:1m 30s
Bu soruyu puanla

Konular

Joint Venture Accounting: Separate Set of Books Method

Bu konudan daha fazla soru