Levi and Zeke agreed on a joint venture to purchase and sell car accessories. Their contract stipulates that the participants shall contribute P25,000 each to be used in purchasing the merchandise, share equally in any gain or loss, and record their venture transactions in their individual books. After one year, they decided to terminate the venture and the following data were taken from their respective records: Joint venture credit account balances were P18,000 for Levi and P20,200 for Zeke. Cost of car accessories taken by Levi and Zeke were P1,000 and P1,800, respectively. From the joint venture cash, expenses paid were P1,850 by Levi and P2,600 by Zeke. a. How much were the joint venture sales? b. how much was the joint venture gain?
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
1. Levi and Zeke agreed on a joint venture to purchase and sell car accessories. Their contract stipulates that the participants shall contribute P25,000 each to be used in purchasing the merchandise, share equally in any gain or loss, and record their venture transactions in their individual books.
After one year, they decided to terminate the venture and the following data were taken from their respective records:
- Joint venture credit account balances were P18,000 for Levi and P20,200 for Zeke.
- Cost of car accessories taken by Levi and Zeke were P1,000 and P1,800, respectively.
- From the joint venture cash, expenses paid were P1,850 by Levi and P2,600 by Zeke.
a. How much were the joint venture sales?
b. how much was the joint venture gain?
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