On B’s books:
| Joint Venture, A and C, to Mexico | 24,000.00 | ||
| A | 5,000.00 | ||
| Cash | 11,000.00 | ||
| C | 8,000.00 | ||
| To set up the venture transaction. | |||
| B, Capital | 11,000.00 | ||
| Joint Venture, A and C, Investment | 11,000.00 | ||
| To show capital invested in joint venture. | |||
| Joint Venture, A and C, to Mexico | 890.00 | ||
| C | 890.00 | ||
| Freight, duty, etc., paid by C. | |||
On C’s books:
| Joint Venture, A and B, to Mexico | 24,000.00 | ||
| A | 5,000.00 | ||
| B | 11,000.00 | ||
| Purchases | 8,000.00 | ||
| (As above.) | |||
| C, Capital | 8,000.00 | ||
| Joint Venture, A and B, Investment | 8,000.00 | ||
| (As above.) | |||
| Joint Venture, A and B, to Mexico | 890.00 | ||
| Cash | 890.00 | ||
| (As above.) | |||
| C, Capital | 890.00 | ||
| Joint Venture, A and B, Investment | 890.00 | ||
| Freight, duty, etc., paid by C. | |||
2. On B’s books at the time of settlement:
| Joint Venture, A and C, to Mexico | 1,620.00 | ||
| A | 150.00 | ||
| Interest Income, Joint Venture, A and C | 330.00 | ||
| C | 1,140.00 | ||
| 6% interest on original contributions of each partner for six months; 3% commission to C on sales. | |||
| C | 30,150.00 | ||
| Joint Venture, A and C to Mexico | 30,150.00 | ||
| 6% interest charged C on $30,000 for one month; C charged with his collections from sales $30,000. | |||
On C’s books:
| Joint Venture, A and B, to Mexico | 1,620.00 | ||
| A | 150.00 | ||
| B | 330.00 | ||
| Interest Income, Joint Venture, A and B | 240.00 | ||
| Commission Earned, Joint Venture, A and B | 900.00 | ||
| Cash | 30,000.00 | ||
| Interest Cost | 150.00 | ||
| Joint Venture, A and B, to Mexico | 30,150.00 | ||
3. On the records of all the partners the Joint Venture account shows a credit balance, i.e., a profit of $3,640, the distribution of which will be as follows:
On B’s books: