Mr Carter entered into a joint venture with Mr Thomas for the purchase and sale of bicycles. They agreed that profits and losses should be shared equally.

The following transactions took place:

You are required to prepare:
(i) a statement to show the net profit or loss of the joint venture, and (ii) the accounts for the joint venture in the books of Mr Carter and Mr Thomas.

Transcribed Image Text:

(a) Mr Carter purchased bicycles for 88,900 and paid carriage 273. (b) Mr Thomas purchased bicycles for 7,560 and paid carriage 51. (c) Mr Thomas paid to Mr Carter 40,000. (d) Mr Carter sold bicycles for 73,400 and sent a cheque for 30,000 to Mr Thomas. (e) Mr Thomas sold for 10,230 all the bicycles he had purchased. (f) The unsold bicycles in the possession of Mr Carter were taken over by him at a valuation of 26,000. (g) The amount due from one venturer to the other was paid and the joint venture was dissolved.