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Mr. Zahid and Mr. Akbar were participants in a joint Venture, sharing profits and losses in the proportion of 2/3 and 1/3 respectively. Each party
Mr. Zahid and Mr. Akbar were participants in a joint Venture, sharing profits and losses in the proportion of 2/3 and 1/3 respectively. Each party maintains a complete record in his own books. Mr. Zahid supplies goods to the value of Rs. 35,000 and incurs expenditure of Rs. 1600 on them, and Mr. Akbar supplies goods to the extent of Rs. 22,000 and his expenses amounted to Rs. 1900. Mr. Zahid sells all the goods for Rs. 68,000 for which he is entitled to receive a commission at 5%. Accounts are settled by bank draft. Required: Give the necessary journal entries and the ledger accounts in the books of Mr. Zahid to record the above transactions. (20) Ms. Asia of Multan consigned 1,200 sets of Jewellery to her agent Ms. Zoya of Bahawalpur costing Rs. 5,500 each set and incurred the expenses as: Packing Rs. 8,000 carriage Rs. 5,000 and railway freight Rs. 6,000. Ms. Zoya took delivery of sets and spent Rs, 8,600 for cartage and Rs. 22,000 for warehouse rent and sold 1,100 cases at Rs. 7000 per set. She sent the net amount to Ms. Asia after deducting his expenses and commission@15 percent on gross sale together with his account Sales. Pequired: Record the above transactions in the books of Ms. Asia. (20)
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