Reference no: EM132902716

Trann and Sister entered into a joint venture ,effective from 1 January 1999 to repair television sets and audio equipment.It was agreed that Trann would secure orders, collect the items from customers, transport them to Sista(who would then carry out the repair work) deliver them back to the customers and collect cash.

Each party was to charge his expenses against the joint ventures, and profits and losses were to be shates" Trann 2/5 , settlement to be made quarterly. IN arriving at the profits or loss, work in progress is to be disregarded

Dusing the first quarter of 199 the following transactions arose:

Trann assisted in financing Sista by sending him a cheque for £600.

SIsta bought a stock of spares, components and other materials for £ 700 of which £400 worth were still in stocks at March 1999.

Trann placed advertisements in the local papers at a cost of £100 and collected cash from customers amounting to $4900.

Wages paid to part time staff BY Sista totalled £1950 and by Trann £550.

An allowance was made to Trann £500 for vehicle running expenses and £200 to each party for use of their general services.

Required:

Prepare the joint venture accounts in the books of each venturee together with the memorandum. Joint account for the quarter ended 31st March 1999.