Rock, Hill and Pine enter into a joint venture for dealing in paintings. The following transactions took place:

Required:

Show the joint venture accounts in the books of the three parties. Show in full the workings needed to arrive at the profit on the venture. The profit or loss was to be split: Hill one-half; Rock one-third; Pine one-sixth. Any outstanding balances between the parties were settled on 31 July 20X4.

Transcribed Image Text:

20X4 May "1 1 Rock rented a shop paying 3 months rent £2,100. 3 Hill bought a van for £2,200. 5 Hill bought paintings for £18,000. 17 Pine received cash from sale proceeds of paintings £31,410. 23 Rock bought paintings for £317,000. June 9 Van broke down. Pine agreed to use his own van for the job until cessation of the joint venture at an agreed charge of £600. 14 Van bought on May 3 was sold for £1,700. Proceeds were kept by Rock. 17 Sales of paintings, cash being paid by Hill £4,220. 25 Lighting bills paid for shop by Pine £86. 29 Pine bought paintings for £1,700. "1 "1 "1 "1 #1 "1 July 3 General expenses of shop paid for £1,090, Pine and Rock paying half each. Paintings sold by Pine £2,300, proceeds being kept by him. 11 16 31 Joint venture ended. The paintings still in stock were taken over at an agreed valuation of £6,200 by Hill. "1