B. B's Account Bishal of Birgunj and Kumar of Kathmandu entered into a joint venture for the purpose
of buying and selling second hand cars; Bishal to make purchases and Kumar to effect
sales. The profit and loss was to be shared equally. Kumar remitted a sum of Rs. 1,500,000
to Bishal towards the venture.
Bishal purchased 8 Cars for Rs. 1,600,000 and paid Rs. 400,000 for their reconditioning
and sent them to Kathmandu. He also incurred an expense of Rs. 50,000 in transporting
the cars to Kathmandu.
Kumar sold 7 cars for Rs. 2,450,000 and retained the remaining for himself at an agreed
value of Rs. 360,000. His expenses were: insurance Rs. 10,000; garage rent Rs. 20,000;
brokerage Rs. 20,000 and miscellaneous expenses Rs. 7,000.
Each party's ledger contains a record of his own transactions on joint account. Prepare
statement showing the result of the venture and the joint venture account with Bishal
in the books of Kumar as it will finally appear, assuming that the matter was finally
settled between the parties.