Question 01 Shafi, Rafi and Kafi own adjourning properties of 20, 15 and 10 acres of land respectively. It is agreed to pool these properties and to develop, sub-divide and sell the land as a joint venture. It is agreed that a valuation of Tk. 4,00,000 shall be allowed for each acre contributed to the venture, profits are to be divided a follow: (i) A commission of 10% on selling price is to be allowed to each member making plot sales. (ii) Upon conclusion of the venture, a salary of Tk. 40,000 is to be allowed to Kafi, who is to act as managing partner; Kafi is to take care of the venture receipts & expenditures. (iii) The net profit after allowance of commission and salaries is to be divided equally. (iv) Kafi pays Tk. 5,00,000 for improvements that are completed in April. The property is subdivided into 155 plots that are offered for sale as follows: Number Selling price per plot Plots, Grade A 40 Tk. 1,50,000 Plots, Grade B 115 Tk. 100,000 All of the plots are sold for cash in May and June. Sales by members of the venture are as follows: Number of plots sold Grade A Grade B Sales by Shafi 10 30 Sales by Rafi 15 40 Sales by Kafi 05 10 Remaining plots are sold by sales man. Advertising Salaries and miscellaneous expenses were Tk. 20,000. The profit from the venture is calculated and Kafi distributes cash to members in final settlement Instructions: (i) Assuming that a separate set of books of the venture is not kept, prepare journal entries to record the fore going transactions in the books of Managing Partner Kafi. (ii) Show also the Co-venturers personal account in the book of Managing Partner Kafi