Preparation of Joint Venture Accounts - SS3 Accounting Past Questions and Answers - page 1
Question:
The following are transactions gotten from the books of for JOY AND GRACE provision shop for the month of November 2022. You are required to prepare the joint ventures account.
|
Date |
Transaction Description |
JOY's Share (₦) |
GRACE's Share (₦) |
|
November 1, 2022 |
JOY invested ₦80,000 in cash |
80,000 |
- |
|
November 3, 2022 |
GRACE invested a refrigerator worth ₦120,000 in the company |
- |
120,000 |
|
November 7, 2022 |
The company purchased inventory worth ₦50,000 on credit from a supplier |
25,000 |
25,000 |
|
November 10, 2022 |
The company sold goods worth ₦100,000 for cash |
50,000 |
50,000 |
|
November 13, 2022 |
JOY withdrew ₦10,000 in cash for personal use |
10,000 |
- |
|
November 15, 2022 |
The company paid rent for the month of November 2022 of ₦20,000 in cash |
10,000 |
10,000 |
|
November 18, 2022 |
The company purchased additional inventory worth ₦70,000 on credit from a supplier |
35,000 |
35,000 |
|
November 20, 2022 |
The company sold goods worth ₦80,000 on credit to a customer |
40,000 |
40,000 |
|
November 23, 2022 |
The company received payment of ₦50,000 from the customer who purchased goods on credit |
25,000 |
25,000 |
|
November 27, 2022 |
GRACE withdrew ₦15,000 in cash for personal use |
- |
15,000 |
|
November 30, 2022 |
The company paid ₦5,000 for utilities in cash |
2,500 |
2,500 |
Answer:
Joint Venture Account for JOY and GRACE Provision Shop
As of November 30, 2022
|
Particulars |
JOY's Share (₦) |
GRACE's Share (₦) |
Total (₦) |
|
Capital (Nov 1) Refrigerator Purchases Sales (Nov 10) Accounts Receivable Cost of goods sold Rent expense Utilities expense Net Income Withdrawals Capital (Nov 30) |
80,000 - 60,000 50,000 40,000 (35,000) (10,000) (2,500) 40,500 (10,000) 110,500 |
120,000 120,000 60,000 50,000 40,000 (35,000) (10,000) (2,500) 45,500 (15,000) 151,500 |
200,000 120,000 120,000 100,000 80,000 (70,000) (20,000) (5,000) 86,000 (25,000) 262,000 |