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Question - P, Q and R entered into a Joint venture of a contract and Rs. 1, 00,000 is the contract price. Rs 40,000, Rs 20,000 and Rs 20.000 were invested by P, Q and R respectively and joint bank account was opened. They purchased materials for Rs 60,000.
P paid architect's fees of Rs 1000, Q paid for sundry expenses of Rs 2000 and R paid for cement Rs 4000. The contract was duly carried out. All the transactions were done through Joint Bank account.
Pass necessary journal entries and prepare ledger accounts when separate set of books is maintained.
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