On 1 November 2016, Ahmad and Ganeswaran entered into a joint venture for a clothing business....
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On 1 November 2016, Ahmad and Ganeswaran entered into a joint venture for a clothing business. Ganeswaran contributed $7,000 to fund the business, while Ahmad's contribution was $5,000. The transactions for the months of November and December 2016 were as follows: November 2016 2 Ahmad supplied goods $3,400. 10 Ganeswaran paid the shop rental $800. Ahmad sold goods by cash $9,000. 22 28 Ganeswaran sold goods by cash $4,000. December 2016 12 29 29 Ganeswaran sold goods by cash $11,200. Ahmad paid transportation expenses $500. Ahmad paid wages $1,400. Ahmad sold goods by cash $2,000. The venturers were paid 3% commission on sales that they made, and received 5% interest on the total amount of money contributed to the business. Ahmad and Ganeswaran had agreed to share the profits and losses equally between them. Required: Prepare the Memorandum of Joint Venture account and show the relevant ledger accounts in the books of the venturers. On 1 November 2016, Ahmad and Ganeswaran entered into a joint venture for a clothing business. Ganeswaran contributed $7,000 to fund the business, while Ahmad's contribution was $5,000. The transactions for the months of November and December 2016 were as follows: November 2016 2 Ahmad supplied goods $3,400. 10 Ganeswaran paid the shop rental $800. Ahmad sold goods by cash $9,000. 22 28 Ganeswaran sold goods by cash $4,000. December 2016 12 29 29 Ganeswaran sold goods by cash $11,200. Ahmad paid transportation expenses $500. Ahmad paid wages $1,400. Ahmad sold goods by cash $2,000. The venturers were paid 3% commission on sales that they made, and received 5% interest on the total amount of money contributed to the business. Ahmad and Ganeswaran had agreed to share the profits and losses equally between them. Required: Prepare the Memorandum of Joint Venture account and show the relevant ledger accounts in the books of the venturers.
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MEMORANDUM OF JOINT VENTURE DEBIT CREDIT SALES 26200 TO GOODS SUPPLIED 3400 TO RENT EXPENSE 800 TO T... View the full answer
Related Book For
Accounting for Decision Making and Control
ISBN: 978-1259564550
9th edition
Authors: Jerold Zimmerman
Posted Date:
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