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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
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
Yenki paid for transport and storage
Adama paid for sales and distribution expenses
Sales made for cash Yenki GHC Adama GHC
Goods purchased for cash Yenki GHC Adama GHC
General expenses paid Yenki GHC II Adama GHC
Sales made for cash Yenki GHCl Adama GHC
Sales and Distribution expenses paid by Adama
Adama took over the remaining inventory at an agreed valuation of
Required: Prepare the Joint Venture accounts in the books of Yenki and Adama and
Joint venture Memorandum account.
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