Andrew and Roger entered into a joint venture and agreed hare profits and losses in the ratio of 3 : 2 respectively.
Andrew purchased goods worth Re 1,00,000 in cash. He spent Re 10,000 on freight and insurance and dispatched the goods to Roger.
Roger got the goods released from-the transport company and paid Rs 5.000 on carriage up to the warehouse and Rs 10.000 as rent of the warehouse.
Roger sold 80% of the goods for Rs 3,00,000. He was entitled to receive commission a 6% of the sales. He later informed Andrew that the remaining goods were desroyed by fire. Since the goods in the warehouse were not insured. Roger agreed to bear the entire loss which was valued at original cost plus proportionate expenses. The accounts were settled between the co-venturers by means of a bank draft.
You are required to prepare in the books of Andrew:
(i) Joint Venture Account.
(ii) Roger’s Account.
