QUESTION I

Yenki and Adama agreed to enter into a joint venture in a retail business, profits and losses to be shared equally. The following transactions took place during the course of the venture

Yenki bought and paid for goods

$100,000$

Yenki paid for transport and storage

$10,000$

Adama paid for sales and distribution expenses

$60,000$

Sales made for cash Yenki GHC $75000$ Adama GHC $125,000$

$200,000$

Goods purchased for cash Yenki GHC $70,000$ Adama GHC $110,000$

$180,000$

General expenses paid Yenki GHC II$,000$ Adama GHC $6,00017,000$

Sales made for cash Yenki GHCl$40,000$ Adama GHC $120,000260,000$

Sales and Distribution expenses paid by Adama

$52,000$

Adama took over the remaining inventory at an agreed valuation of $12,000$

Required: Prepare the Joint Venture accounts in the books of Yenki and Adama and

Joint venture Memorandum account.