Kamau and John entered into a Joint Venture on 15th April, 2015. They opened a joint...

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Kamau and John entered into a Joint Venture on 15th April, 2015. They opened a joint banking account with a sum of Kshs. 70,000 out of which Kamau contributed Kshs. 40,000 and John contributed the balance. They agreed to share profits or losses in the ratio of 3:2 after providing for interest on capitals at 6% p.a. They purchased goods for Kshs. 60,000 in cash and sent to a Nakuru agent for sale. Freight and Insurance amounted to Kshs. 3,800. All the goods were sold by the agent for Kshs. 105,000 and the agent remitted the amount after deducting his commission at 10% and expenses Kshs. 1,650 Required: Prepare necessary accounts in the books of Joint Venture, assuming that the final settlement was made on 15th August, 2015 (15marks) Kamau and John entered into a Joint Venture on 15th April, 2015. They opened a joint banking account with a sum of Kshs. 70,000 out of which Kamau contributed Kshs. 40,000 and John contributed the balance. They agreed to share profits or losses in the ratio of 3:2 after providing for interest on capitals at 6% p.a. They purchased goods for Kshs. 60,000 in cash and sent to a Nakuru agent for sale. Freight and Insurance amounted to Kshs. 3,800. All the goods were sold by the agent for Kshs. 105,000 and the agent remitted the amount after deducting his commission at 10% and expenses Kshs. 1,650 Required: Prepare necessary accounts in the books of Joint Venture, assuming that the final settlement was made on 15th August, 2015 (15marks)

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