1
Frank entered into a joint venture with Graham for the purchase and sale of robot mowers.
They agreed that profits and losses should be shared equally.
The following transactions took place:
(a) Frank purchased mowers for £120,400 and paid carriage £320.
(b) Graham purchased mowers for £14,860 and paid carriage £84.
(c) Graham paid to Frank £70,000.
(d) Frank sold mowers for £104,590 and sent a cheque for £50,000 to Graham.
(e) Graham sold for £19,200 all the mowers he had purchased.
(f
) The unsold mowers in the possession of Frank were taken over by him at a valuation of £40,000.
(g) The amount due from one venturer to the other was paid and the joint venture was dissolved.
You are required to prepare:
(i
) a statement to show the net profit or loss of the joint venture, and
(ii
) the accounts for the joint venture in the books of Frank and Graham.