Help me to do in the book of tunde joint venture with beta

Accounting

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Step-by-step solution

2 steps

Here is the "Joint Venture with Beta Account" as it would appear in Tunde's books:

  1. Identify Tunde's transactions related to the Joint Venture.

    From the problem details and previous calculations, Tunde's relevant transactions are:

    • Initial contribution to Joint Bank: N20,000
    • Payment of licensing fee: N4,000
    • Share of profit from the venture: N15,200
    • Final settlement received from Joint Bank: N39,200
  2. Prepare the Joint Venture with Beta Account in Tunde's Ledger.

    In Tunde's books, the "Joint Venture with Beta Account" tracks Tunde's investment in and returns from the venture. Contributions and expenses paid by Tunde for the venture, as well as Tunde's share of profit, are debited to this account. The final settlement received by Tunde is credited.

    DateParticularsNDateParticularsN1/1To Bank A/c (Contribution)20,0007/1By Bank A/c (Final Settlement)39,2007/1To Bank A/c (Licensing Fee Paid)4,0007/1To Profit & Loss A/c (Share of Profit)15,200Total39,200Total39,200\begin{array}{|l|l|r|l|l|r|} \hline \textbf{Date} & \textbf{Particulars} & \textbf{N} & \textbf{Date} & \textbf{Particulars} & \textbf{N} \\ \hline \text{1/1} & \text{To Bank A/c (Contribution)} & 20,000 & \text{7/1} & \text{By Bank A/c (Final Settlement)} & 39,200 \\ \text{7/1} & \text{To Bank A/c (Licensing Fee Paid)} & 4,000 & & & \\ \text{7/1} & \text{To Profit \& Loss A/c (Share of Profit)} & 15,200 & & & \\ \hline & \textbf{Total} & \textbf{39,200} & & \textbf{Total} & \textbf{39,200} \\ \hline \end{array}

    The account balances, indicating that Tunde's dealings with the joint venture are closed.

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