A and B enter into a joint venture to take a building contract for ~ 2,40,000. They
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Question:
A and B enter into a joint venture to take a building contract for ~ 2,40,000. They provide the following information regarding the expenditure incurred by them :
| A | B |
Materials | 68,000 | 50,000 |
Cement | 13,000 | 17,000 |
Wages |
| 27,000 |
Architect’s fee | 10,000 |
|
License fees |
| 5,000 |
Plant |
| 20,000 |
Plant was valued at ~ 10,000 at the end of the contract and B agreed to take it at that value. Contract amount of ~ 2,40,000 was received by A.
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(i) Joint Venture Account and B Account in the books of A; and
(ii) Joint Venture Account and A Account in the books of B.
Expert Answer:
Related Book For 
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Posted Date:
