Joint Venture and Consignment Accounts

Match each consignment term or document in Column A with its correct accounting description in Column B.

Two merchants, Audu and Bisi, agree to combine their capital and expertise to purchase and sell a seasonal batch of agricultural produce over a three-month period, after which the business will terminate and profits will be shared. Which of the following key features distinguishes this business arrangement as a joint venture rather than an ordinary partnership?

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

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

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

Ade and Baba entered into a joint venture sharing profits and losses in the ratio of 3:2. A separate set of books was maintained for the venture. They opened a Joint Bank Account, contributing ₦500,000 and ₦300,000 respectively.

The venture transactions were as follows:
- Purchases paid through Joint Bank: ₦600,000
- Freight and carriage paid through Joint Bank: ₦40,000
- Storage expenses paid through Joint Bank: ₦20,000
- Carriage paid directly by Ade from personal funds: ₦15,000
- Goods supplied by Baba from his personal stock: ₦80,000
- Sales proceeds deposited into Joint Bank: ₦1,000,000
- Unsold stock taken over by Baba: ₦35,000

Ade is entitled to a 5% commission on sales proceeds for managing the venture.

What is the final amount in Naira (₦) payable to Ade from the Joint Bank Account upon settlement?

Tayo and Emeka entered into a joint venture to supply construction materials, maintaining a separate set of books. Tayo contributed $\text{₦}400,000$ and Emeka contributed $\text{₦}200,000$ into a Joint Bank Account. Materials purchased using Joint Bank funds cost $\text{₦}350,000$, and direct expenses paid from the Joint Bank totaled $\text{₦}150,000$. Tayo paid additional transport costs of $\text{₦}30,000$ from his personal funds. Total sales proceeds of $\text{₦}750,000$ were deposited into the Joint Bank, while Emeka took over unsold inventory valued at $\text{₦}40,000$. Profits and losses are shared between Tayo and Emeka in the ratio $3:2$. What is the net profit of the joint venture in Naira?

In a consignment arrangement, what is the legal relationship between the consignor who dispatches the goods and the consignee who receives them?

Chief Mensah consigned $500$ cases of goods costing $\text{₦}2,000$ per case to Ade. The consignor incurred the following expenses on dispatch: freight of $\text{₦}100,000$ and transit insurance of $\text{₦}50,000$.

Upon taking delivery, Ade paid $\text{₦}30,000$ for clearing and unloading, $\text{₦}40,000$ for godown rent, and $\text{₦}50,000$ for salesman commission and advertising. At the end of the period, Ade reported that $400$ cases were sold.

What is the total value of the unsold consignment stock to be credited to the Consignment Account?

Kalu and Sule entered into a joint venture to deal in goods, sharing profits and losses in the ratio $3:2$ respectively, using the Memorandum Joint Venture method. Kalu supplied goods worth $\text{N}60,000$ and paid expenses of $\text{N}4,000$. Sule supplied goods costing $\text{N}40,000$ and paid expenses of $\text{N}6,000$. Sule sold all the venture goods for $\text{N}150,000$ and is entitled to a $5\%$ commission on total sales. What is the final cash settlement amount payable by Sule to Kalu upon closing the venture?

Ade consigned goods to Chukwu and paid him a del-credere commission to guarantee payment from credit customers. During the trading period, Chukwu incurred bad debts from credit sales. How should these bad debts be recorded in Ade's ledger accounts?

Kalu consigned $100$ cases of goods costing $\text{₦}1,000$ per case to Bola. Kalu paid carriage and freight expenses of $\text{₦}10,000$. Bola received the consignment and sold $80$ cases, incurring non-recurring unloading charges of $\text{₦}5,000$ and recurring godown rent of $\text{₦}2,000$. What is the total valuation of the unsold consignment stock in Naira?

Bala consigned goods to Okon to be sold on commission. Okon sold goods worth ₦200,000 for cash and ₦300,000 on credit. Under the agreement, Okon is entitled to an ordinary commission of $5\%$ on total sales and a del-credere commission of $2\%$ on total sales. During the consignment period, a customer defaulted on credit sales, resulting in a bad debt of ₦15,000. Assuming Okon incurred no other expenses, what is the net amount payable by Okon to Bala?

Chief Folari consigned $500$ cases of goods to Danjuma at $\text{₦}2,000$ per case and paid $\text{₦}50,000$ for freight and insurance. Danjuma sold $400$ cases for $\text{₦}1,120,000$ and incurred $\text{₦}50,000$ in total handling and selling expenses. Danjuma is entitled to a $5\%$ ordinary commission and a $2.5\%$ del-credere commission on total sales. Prior to settlement, Danjuma sent an advance of $\text{₦}300,000$ by bank draft. If credit customers defaulted resulting in bad debts of $\text{₦}15,000$, what is the net amount remittable by Danjuma to Chief Folari in final settlement of his account?

Audu consigned $400$ cartons of goods costing $\text{₦}5,000$ per carton to Emeka. Audu paid carriage of $\text{₦}80,000$ and transit insurance of $\text{₦}40,000$. Emeka received the consignment and paid landing charges of $\text{₦}60,000$, godown rent of $\text{₦}30,000$, and selling expenses of $\text{₦}50,000$. At the end of the accounting period, Emeka reported that $300$ cartons had been sold. What is the total valuation of the unsold consignment stock in Naira?

Bisi dispatched $250$ bags of rice costing $\text{₦}20,000$ per bag to Okon on consignment. Bisi incurred freight of $\text{₦}150,000$ and transit insurance of $\text{₦}50,000$. Okon took delivery of the goods and paid clearing charges of $\text{₦}100,000$, godown rent of $\text{₦}60,000$, and advertising expenses of $\text{₦}40,000$. At the end of the period, Okon had sold $200$ bags. What is the value of the unsold consignment stock?

Kalu consigned 1,000 crates of soft drinks costing ₦2,000 per crate to an agent in Enugu. He paid carriage of ₦150,000 and insurance of ₦50,000. During transit, 100 crates were completely destroyed in an accident. What is the value of the abnormal loss in Naira (₦) to be credited to the Consignment Account?

Zainab and Chidi opened a Joint Bank Account to execute a joint venture in imported fabrics, sharing profits and losses in the ratio of $3:2$. Zainab and Chidi contributed $\text{₦}1,500,000$ and $\text{₦}1,000,000$ respectively into the Joint Bank. Goods costing $\text{₦}1,800,000$ were paid for from the Joint Bank, and freight charges of $\text{₦}120,000$ were also paid from the Joint Bank. Zainab supplied additional materials valued at $\text{₦}250,000$ from her personal stock. Chidi incurred advertising expenses of $\text{₦}80,000$ from his personal funds and was entitled to a $5\%$ commission on gross sales for managing the venture. Total sales proceeds of $\text{₦}3,000,000$ were deposited into the Joint Bank Account. At the close of the venture, Zainab took over unsold goods valued at $\text{₦}150,000$. What is the final cash amount in Naira ($\text{₦}$) paid to Chidi from the Joint Bank Account to close his account?

Kalu Enterprise consigned $200$ cartons of goods to Bisi Traders at a cost price of $\text{₦}5,000$ per carton. Kalu paid $\text{₦}40,000$ for freight and insurance. Bisi Traders sold $150$ cartons at $\text{₦}6,000$ per carton and incurred selling expenses of $\text{₦}20,000$. Bisi Traders is entitled to a $5\%$ ordinary commission and a $2.5\%$ del-credere commission on total sales. During the period, bad debts arising from credit sales amounted to $\text{₦}15,000$. What is the net amount Bisi Traders will remit to Kalu Enterprise?

Tunde consigned $600$ cases of electrical appliances costing $\text{₦}15,000$ per case to Chidi. Tunde incurred freight charges of $\text{₦}360,000$, transit insurance of $\text{₦}180,000$, and loading costs of $\text{₦}60,000$. Upon receiving the goods, Chidi paid dock dues of $\text{₦}120,000$, clearing charges of $\text{₦}180,000$, godown rent of $\text{₦}90,000$, and advertising expenses of $\text{₦}60,000$. At the end of the accounting period, Chidi had successfully sold $450$ cases.

What is the correct valuation of the unsold consignment stock to be credited to the Consignment Account?

Femi and Ibrahim entered into a joint venture to trade in surplus industrial machinery, maintaining a separate set of books. They agreed to share profits and losses in the ratio of $3:2$, respectively. They opened a Joint Bank account with initial contributions of $\text{₦}1,200,000$ from Femi and $\text{₦}800,000$ from Ibrahim. Purchases paid directly from the Joint Bank amounted to $\text{₦}1,500,000$, while Femi supplied additional goods from his own business stock valued at $\text{₦}300,000$. Ibrahim paid carriage and handling expenses of $\text{₦}100,000$ from his personal bank account, and general venture expenses of $\text{₦}150,000$ were paid out of the Joint Bank. Femi was entitled to a management commission of $5\%$ on total gross sales proceeds. Total sales cash proceeds deposited into the Joint Bank were $\text{₦}2,400,000$, and the remaining unsold inventory was taken over by Ibrahim at an agreed valuation of $\text{₦}200,000$. What is the final amount in Naira ($\text{₦}$) payable to Femi from the Joint Bank Account upon final cash settlement?

Under a consignment agreement, if the consignor pays a del-credere commission to the consignee, who bears the loss arising from bad debts on credit sales?