Prepare the memorandum of joint venture account

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Question - X and Y entered into Joint Venture to sell a consignment of timber sharing profits and losses equally. X provides timber from stock at mutually agreed value of RM50,000. He pays expenses amounting to RM 2,500. Y incurs further expenses on storage of RM6,500 and receives cheque for sales RM 30,000. He also takes over goods to the value of RM10,000 for his own use. At the close, X takes over the balance stock in hand which is valued at RM1 1,000.

Required -

(a) Open the necessary ledger accounts in the books of X and Y.

(b) Prepare the memorandum of joint venture account.

(c) State the TWO (2) categories of accounting for joint venture. Besides, what is the purpose of preparing the memorandum of joint venture account.

Reference no: EM133122458

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