Anil and Saji entered into a joint venture to buy and sell old machines. They decided to share profit and losses in the ratio of 3:2.
Anil purchased 200 machines at Rs 3,000 each and sent them to Saji for sale.
Anil incurred Rs 26,000 on freight and transit insurance.
Saji took delivery of the machines and incurred Rs 24,000 as clearing charges and Rs 6,000 as selling expenses.
Anil drew a bill on Saji for Rs 4,00,000 which was accepted by Saji. The bill was discounted by Anil for Rs 3,90,000 with the bank.
Saji was able to sell 190 machines at Rs 3,850 per machine.
The unsold machines were taken by Anil for his next venture at the original cost plus proportionate non-recurring expenses less 10%.
Saji was entitled to a commission of 2% on the sales made by him.
The co-ventures settled their accounts by means of a bank draft.
It was decided that Anil would maintain a record of all the transactions.
You are required to pass journal entries in the books of Anil.
