Preparation of Joint Venture Accounts - SS3 Accounting Lesson Note
Question:
The following are transactions gotten from the books of AYO and DAMIS' company for the month of September 2022. You are required to prepare the joint venture account.
|
Date |
Transaction Description
AYO's Share (₦)
DAMIS' Share (₦)
September 1, 2022
AYO invested ₦100,000 in cash
100,000
-
September 2, 2022
DAMIS invested a laptop worth ₦150,000 in the company
-
150,000
September 7, 2022
The company purchased office furniture for ₦80,000 in cash
40,000
40,000
September 10, 2022
The company sold goods worth ₦200,000 for cash
100,000
100,000
September 12, 2022
AYO withdrew ₦20,000 in cash for personal use
20,000
-
September 15, 2022
The company paid rent for the month of September 2022 of ₦50,000 in cash
25,000
25,000
September 18, 2022
The company purchased inventory worth ₦120,000 on credit from a supplier
60,000
60,000
September 20, 2022
The company sold goods worth ₦150,000 on credit to a customer
75,000
75,000
September 22, 2022
DAMIS withdrew ₦30,000 in cash for personal use
-
30,000
September 25, 2022
The company received payment of ₦100,000 from the customer who purchased goods on credit
50,000
50,000
September 30, 2022
The company paid ₦10,000 for utilities in cash
5,000
5,000
Answer:
Joint Venture Account for AYO and DAMIS' Company
As of September 30, 2022
|
Particulars |
AYO's Share (₦)
DAMIS' Share (₦)
Total (₦)
Capital (Sep 1)
Office furniture
Sales (Sep 10)
Accounts Receivable
Cost of goods sold
Rent expense
Utilities expense
Net Income
Withdrawals
Capital (Sep 30)
100,000
40,000
100,000
75,000
(60,000)
(25,000)
(5,000)
85,000
(20,000)
180,000
150,000
40,000
100,000
75,000
(60,000)
(25,000)
(5,000)
85,000
(30,000)
265,000
250,000
80,000
200,000
150,000
(120,000)
(50,000)
(10,000)
170,000
(50,000)
445,000