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 |