Arun and Varun entered into a joint venture to purchase, recondition and sell second-hand cars. Arun purchased for cash 100 cars at an average price of 35,000 during the period from 1st October, 2014 to 31st March, 2015. Varun, during the same period reconditioned the cars by spending the following amounts: Spare parts used 1,80,000 Painting 2,00,000 Air-conditioning - 10 Cars 3,00,000 Testing Charges 20,000 Insurance 60,000 Labour Charges 10,40,000 Arun and Varun sold the cars, the details of which are as under: Sold by Arun A.C. Cars 5 4 Non-A.C. Cars 35 46 A.C. cars were sold at 1,75,000 each while Non-A.C. cars were sold as follows: Arun, 35 cars @ 1.25 lakhs each Varun, 35 cars @ 1.10 lakhs each 11 cars @ 0.80 lakhs each During testing, one non-A.C. car met with an accident and Arun recovered from the Insurance Company the actual cost as claim amount. Prepare the Memorandum Joint Venture Account and Account of Varun in the books of Arun. Varun