Frank entered into a joint venture with Graham for the purchase and sale of robot mowers....

  

Transcribed Image Text:

Frank entered into a joint venture with Graham for the purchase and sale of robot mowers. They agreed that profits and losses should be shared equally. The following transactions took place: (a) Frank purchased mowers for £120,400 and paid carriage £320. (b) Graham purchased mowers for £14,860 and paid carriage £84. (c) Graham paid to Frank £70,000. (d) Frank sold mowers for £104,590 and sent a cheque for £50,000 to Graham. Graham sold for £19,200 all the mowers he had purchased. (e) (f) The unsold mowers in the possession of Frank were taken over by him at a valuation of £40,000. (g) The amount due from one venturer to the other was paid and the joint venture was dissolved. You are required to prepare: a statement to show the net profit or loss of the joint venture, and Gi) the accounts for the joint venture in the books of Frank and Graham. Frank entered into a joint venture with Graham for the purchase and sale of robot mowers. They agreed that profits and losses should be shared equally. The following transactions took place: (a) Frank purchased mowers for £120,400 and paid carriage £320. (b) Graham purchased mowers for £14,860 and paid carriage £84. (c) Graham paid to Frank £70,000. (d) Frank sold mowers for £104,590 and sent a cheque for £50,000 to Graham. Graham sold for £19,200 all the mowers he had purchased. (e) (f) The unsold mowers in the possession of Frank were taken over by him at a valuation of £40,000. (g) The amount due from one venturer to the other was paid and the joint venture was dissolved. You are required to prepare: a statement to show the net profit or loss of the joint venture, and Gi) the accounts for the joint venture in the books of Frank and Graham.