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  • Joint Venture Worked Example Question 1 - Separate Books of Account

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    Roshan Ramkhalawon
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    Zohir and Kagendo entered into a joint venture with each contributing capital of $50,000. They kept separate books of account to track their individual capital contributions, expenses paid, and share of profits. The joint venture had sales of $150,000 and expenses of $90,000, resulting in a profit of $51,000 to be split evenly between Zohir and Kagendo.

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    Zohir and Kagendo entered into a joint venture with each contributing capital of $50,000. They kept separate books of account to track their individual capital contributions, expenses paid, and share of profits. The joint venture had sales of $150,000 and expenses of $90,000, resulting in a profit of $51,000 to be split evenly between Zohir and Kagendo.

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    11 views2 pages

    Joint Venture Worked Example Question 1 - Separate Books of Account

    Uploaded by

    Roshan Ramkhalawon
    Zohir and Kagendo entered into a joint venture with each contributing capital of $50,000. They kept separate books of account to track their individual capital contributions, expenses paid, and share of profits. The joint venture had sales of $150,000 and expenses of $90,000, resulting in a profit of $51,000 to be split evenly between Zohir and Kagendo.

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    Joint Venture Worked Example Situation 1 – Separate Books of Account

    Z=½
    Question 1 K=½

    Capital contributed

    Expenses paid from personal bank account

    Joint Venture Account


    Joint Venture Bank: Expenses 90 000 Joint Venture Bank: Sales 150 000
    Zohir: Expenses 4 000
    Kagendo: Expenses 5 000
    Share of profit
    - Zohir (1/2 X 51 000) 25 500
    - Kagendo (1/2 X 51 000) 25 500
    150 000 150 000

    Zohir Account
    Joint Venture Bank: Capital 50 000
    Joint Venture: Expenses 4 000
    Joint Venture Bank ?? 79 500 Joint Venture: Share of profit 25 500
    79 500 79 500
    Kagendo Account
    Joint Venture Bank: Capital 50 000
    Joint Venture: Expenses 5 00
    Joint Venture Bank ? 80 500 Joint Venture: Share of profit 25 500
    80 500 80 500

    Joint Venture Bank Account


    Zohir - capital 50 000 Joint Venture: Expenses 90 000
    Kagendo – capital 50 000 Zohir 79 500
    Joint Venture: Sales 150 000 Kagendo 80 500
    250 000 250 000

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