Question One Kwabena and Ama were in a joint venture business from January 2009 to produce vegetables for distribution to Ashaiman market traders. It was arranged that Kwabena would produce the vegetable at Tema Community 10, and Ama would do the distribution to the traders at the Ashaiman market for sale. Kwabena and Ama were required to charge their expenses against the joint venture and profits and losses to be shared equally, settlement to be made quarterly. During the first quarter of 2021, the following transaction took place and Kwabena sent an amount of GH 150 to Ama in cash to assist him in defraying expenses Ama bought stock of vegetables for GH175 at the start of the quarter and stock remaining was GH100 at 31/03/09. Kwabena placed a local advert which cost GH25 and got GH1,225 cash from buyers. Commission paid to workers by Ama was GH487.5 and by Kwabena GH137.5 Transportation expenses incurred by Kwabena was GH250. Miscellaneous expenses made by each venture was GH50. All transactions were in cash.

Required Prepare

(i) Joint venture account in each venturers books,

(ii) The memorandum joint venture

(iii) Accounts showing settlements in each ventures books.

Question Two i) State two reasons why joint ventures may be formed.

ii) Differentiate between joint venture and partnership businesses.

iii) What is partnership business, according to the Partnership Act.

iv) What is goodwill

v) State three advantages of partnership business