Question on: SS3 Accounting - Preparation of Joint Venture Accounts

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

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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

60,000

50,000

40,000

(35,000)

(10,000)

(2,500)

45,500

(15,000)

151,500

200,000

120,000

100,000

80,000

(70,000)

(20,000)

(5,000)

86,000

(25,000)

262,000