9. A, B & Co. and C, D & Co. enter a joint adventure to ship machinery to New Zealand. C, D & Co., October 5, 1917, handed A, B & Co. $600 in cash and granted them their acceptance at 6 months for $1,500. A, B & Co. were to provide balance of cash required, to manage the venture, to receive a commission of 2% on amount of invoice for machinery. Profits of venture to be divided equally.
On October 6, 1917, A, B & Co. paid J, K & Co. for machinery $2,500, and on the same date discounted acceptance of C, D & Co. for $1,500, paying $30 for discount thereon. On the following day A, B & Co. paid $210 for freight and $30 for insurance. On March 25, 1918, A, B & Co. received from New Zealand to account of proceeds of machinery a draft payable in London for $1,600, out of which, April 8, 1918, they paid $1,500 to retire bills for that amount.
On August 8, 1918, A, B & Co. received from New Zealand a draft for $1,550, being balance of proceeds for machinery, after deducting agent’s commission charges and duty. They thereupon closed the accounts and sent C, D & Co. check for balance due to them.
Make up an account showing result of venture, also C, D & Co.’s account with A, B & Co. Do not regard interest.
10. A B, a commission merchant, doing business on a 5% basis, hands you the following abstract of his ledger, showing his transactions for the year.
Furnish A B’s capital account, showing his original investment; also a balance sheet and a detailed cash account.
| Sales | $45,000.00 | $60,000.00 |
| Freight | 2,100.00 | 1,400.00 |
| Claims and Allowance on Settled Account only | 600.00 | 1,500.00 |
| Expense | 900.00 | |
| Customers’ Accounts | 60,000.00 | 45,000.00 |
| Creditors’ Accounts | 37,950.00 | 39,850.00 |
| Cash | 59,000.00 | 40,950.00 |
| Discounts Lost | 400.00 | |
| $205,950.00 | $188,700.00 |
11. A and B, commission merchants, suspect their cashier of embezzlement. From the following data determine whether or not their suspicions are well founded, and produce a balance sheet and profit and loss statement to prove or disprove the suspicion.
| Sales | $42,000.00 | |
| Cash Receipts, Customers | $42,000.00 | |
| Freight | 4,240.00 | 2,480.00 |
| Duty | 2,120.00 | 1,240.00 |
| Dock Charges | 212.00 | 124.00 |
| Custom House Charges | 90.00 | 45.00 |
| Interest (account sales at 6%) | 248.00 | |
| Commission (5% on sales) | 1,240.00 | |
| Office Expense | 2,000.00 | |
| Documentary Advances | 20,000.00 | 12,000.00 |
| Acceptances against Shipments | 12,000.00 | 20,000.00 |
Analysis of account sales ledger debits, duty $875, freight $1,560, dock charges $70, custom house charges $40.