Nhyiraba Limited entered into a joint venture with KK Quinton Limited agreeing to share profits or...

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Nhyiraba Limited entered into a joint venture with KK Quinton Limited agreeing to share profits or losses equally. Nhyiraba Limited gave an amount of R25,000 as the contribution whiles KK Quinton Limited contributed R28,000 and deposited all the amount in a joint bank account. They acquired goods worth R50,000 from Kwasi Limited and paid R45,000. They accepted a bill for the remaining amount and also their bills payable on the due date. Expenses of R5,000 for electricity, R3,000 for rent and an amount of R1,500 for sales expense was made during the period. All the goods were sold for R70,500 and all necessary requirements were met. The joint venture was closed after the execution of the project. Required: Show the necessary journal entries and ledger accounts in a separate set of books. (20) Nhyiraba Limited entered into a joint venture with KK Quinton Limited agreeing to share profits or losses equally. Nhyiraba Limited gave an amount of R25,000 as the contribution whiles KK Quinton Limited contributed R28,000 and deposited all the amount in a joint bank account. They acquired goods worth R50,000 from Kwasi Limited and paid R45,000. They accepted a bill for the remaining amount and also their bills payable on the due date. Expenses of R5,000 for electricity, R3,000 for rent and an amount of R1,500 for sales expense was made during the period. All the goods were sold for R70,500 and all necessary requirements were met. The joint venture was closed after the execution of the project. Required: Show the necessary journal entries and ledger accounts in a separate set of books. (20)

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Step 1 Journalizing transactions It is the fundamental step of the entire accounting process of a company It is the procedure of recording business tr... View the full answer