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J, K and L formed a joint venture. The contractual arrangement provides that J is to manage the venture and is to receive a fee of 15% of the profit after deduction of the fee as an expense of the venture. The net profit after the fee is be divided: J, 25%; K, 40% and L, 35%.
After 5 months, the joint venture is terminated.
Debit Credit
Joint venture 36,000
K, capital 2,000
L, capital 8,000
The venture has still some unsold merchandise worth 10,000. J agreed to purchase such at cost. The fee of J has not yet been taken up. What is the profit of the venture after the fee to J?
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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