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in Joint Venture Accounts by (63.7k points)

Ravi and Vimal entered in joint venture for purchase and sales of blankets. Ravi will purchase goods and Vimal undertook the sales. They decided to pay 5% interest p.a. to Ravi on his investment and also charge interest at same rate on amount received by him. Vimal will get 4% commission on sales. Profit and losses are shared equally.
Ravi purchased on 1 January 2017, 2000 blanket Rs 60 per blanket. He paid packing charges and other expenses Rs 4,000. Vimal paid freight Rs 6,000 and sold to blanket as follows :
On 1 February 2017, 300 blanket @ Rs 90 each, on 1 July, 2017, 1000 blanket @ Rs 100 each, on 1 October 2017, 500 blanket @ Rs 84 each.
Vimal sent to Ravi Rs 20,000 on 1 March, 2017 and Rs 56,000 on 1 August, 2017. Remaining blanket took by Vimal on cost plus 25% above. On 1 October 2017, final settlement was made.
Assume that each party record all transactions, prepare necessary accounts in the books of both parties.

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Working Notes:

(i) Calculation of Interest payable to Ravi:

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