4. Zahid and Majid entered into a Joint Venture for purchase and sale of some household items. They agreed to share profits and losses as 2/5 and 3/5 respectively. Zahid contributed Rs. 350,000 in cash and Majid Rs. 450,000. The whole amount was placed in a Joint Bank account. Zahid purchased goods for Rs. 250,000 and expenses paid by Majid amounted to Rs. 75,000, They also purchased goods for Rs. 375,000 through the Joint Bank Account. The expenses on purchase and sale of the articles amounted to Rs. 150,000 (including those met by Majid). Goods costing Rs. 500,000 were sold for Rs. 1,125,000 and the balance was lost by fire. Required: Enter the above transactions in the books of both Zahid and Majid. Also show the necessary ledger accounts in the books of the Venture.

4. Zahid and Majid entered into a Joint Venture for purchase and sale of some household items. They agreed to share profits and losses as 2/5 and 3/5 respectively. Zahid contributed Rs. 350,000 in cash and Majid Rs. 450,000. The whole amount was placed in a Joint Bank account. Zahid purchased goods for Rs. 250,000 and expenses paid by Majid amounted to Rs. 75,000, They also purchased goods for Rs. 375,000 through the Joint Bank Account. The expenses on purchase and sale of the articles amounted to Rs. 150,000 (including those met by Majid). Goods costing Rs. 500,000 were sold for Rs. 1,125,000 and the balance was lost by fire. Required: Enter the above transactions in the books of both Zahid and Majid. Also show the necessary ledger accounts in the books of the Venture.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

4. Zahid and Majid entered into a Joint Venture for purchase and sale of some household items. They agreed to share
profits and losses as 2/5 and 3/5 respectively. Zahid contributed Rs. 350,000 in cash and Majid Rs. 450,000. The
whole amount was placed in a Joint Bank account. Zahid purchased goods for Rs. 250,000 and expenses paid by
Majid amounted to Rs. 75,000. They also purchased goods for Rs. 375,000 through the Joint Bank Account. The
expenses on purchase and sale of the articles amounted to Rs. 150,000 (including those met by Majid). Goods
costing Rs. 500,000 were sold for Rs. 1,125,000 and the balance was lost by fire.
Required: Enter the above transactions in the books of both Zahid and Majid. Also show the necessary ledger
accounts in the books of the Venture.

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