Business Accounting Project

6A Ng Sau ping (19)

6A Chan Lai Fong (2)

6A Lau Tsz Ying (12)

6A Lee Chui Ying (14)

Sources: Goods from Japan Selling price : $15 per each Cost:$10 per each (excluding delivery charges) Locating : Wan Chai Goods: Clock Description: The clocks have different shape

and colour, such as robot. Chan, Lau, Lee, Ng entered into a joint venture

which sell clock and agreed to share profits and losses in the ratio of 2:1:1:2. Also, Lee and Lau would be agreed to have a commission 5% on sales made by their own .

2002

Jan 1 Ng bought goods at a cost of $39800,she accepted a bill of exchange for one month.

Jan 2 Ng paid the delivery charges of $500 by cash .

Jan 5 Chan bought good at cost of $40000 by cash .

Jan 16 Ng send half of her goods to Lee .

Jan 21 Lau paid rent $869.

Jan 27 Lau bought goods at cost $50200 on credit . a bill of $50000 was accepted for one month . $200 was trade discounts .

Jan 30 Goods costing $4500 were stolen in the shop . One-third of the loss was paid by Lee , and the remaining half of loss was paid by Ng .

Feb 1 Lee paid the Ng’s bill and bought goods which cost $14000 by cash .

Feb 4 Chan returned goods costing $10000 to the supplier and full allowance on the returned goods was given .

Feb 10 One-third of Lee’s goods are sold at selling price for cash .

Feb 14 Lau also sold half of her goods on credit . A bill of $30000 was accepted by a debtor for one month .The remaining balance is received .

Feb 21 Ng paid wages of $2500 .

Feb 27 Lau’s bill was paid .

Feb 28 Chan bought goods at cost $40800 by cheque and paid the delivery charges of $1000.

Mar 4 Some of goods sold by Lau were returned and returned $5000 to the customers.

Mar 14 The bills receivable was honoured on maturity .

Mar 20 All Ng’s goods are sold for cash at selling price .

Mar 25 Lee agreed to take over the returned goods at a value of $4200 .

Mar 30 All goods are sold for $55000, the sales proceeds were kept by Chan .

Mar 31 The sum required in full settlement between Chan, Lau, Lee, Ng was paid.

 In the book of Lau

2002 $ 2002 $Jan.21 Bank: Rent 869 Feb.14 Bills receivable:Sales 30000Jan.27 Bill payable: Purchase 50000 Feb.14 Cash:SalesMar.4 Cash: Return funds to customers 5000 $[(50000*1/2)/10*15-30000] 7500Mar.31 Profit and Loss: commission Mar.31 Bank: In settlement 24804

$[(3000+7500)*5%] 1875Mar.31 Bank:Share of profit 4560

62304 62304

Joint Venture with Chan , Lee ,Ng

In the book of Chan

2002 $ 2002 $Jan. 5 Cash : Purchase 40000 Jan. 26 Cash :SalesFeb. 28 Bank : Purchase 40800 $(40000/10*15) 60000Feb. 28 Cash : Delivery Charge 1000 Feb.4 Credors :Return outward 10000Mar. 31 Bank : Share of Profit 9120 Mar .30 Cash :Sales 55000Mar. 31 Bank : In Settlement 34080

125000 125000

Joint Venture with Lau, Lee, Ng

In the book of Lee

2002 $ 2002 $Feb.1 Bills payable-Ng 39800 Jan.30 Profit and Loss:Goods stolenFeb.1 Cash:Purchase 14000 $(4500*1/3) 1500Mar.31 Profit and Loss:Commission Feb.10 Cash:Sales

$(25425*5%) 1271 $[(14000+39800*1/2)*1/2]/10*15 25425Mar.31 Bank:Share of Profit 4560 Mar.25 Cash:stock taken over 4200

Mar.31 Bank: In settlement 2850659631 59631

Joint Venture with Chan ,Lau ,Ng

In the book of Ng

2002 $ 2002 $Jan.1 Bills payable: Purchase 39800 Jan.30 Profit and Loss:Goods stolenJan.2 Cash:delivery charges 500 $[(4500-1500)/2] 1500Feb.21 Cash:wages 2500 Feb.1 Bills payable-Lee 39800Mar.31 Bank:Share of Profit 9120 Mar.20 Cash:SalesMar.31 Bank:In settlement 19230 $[(39800/2)/10*5] 29850

71150 71150

Joint Venture with Chan , Lau , Lee

$ $ $Purchase $(40000+40800+50000+14000+39800) 184600 Sales W.1 207775Delivery charges $(1000+500) 1500 Returns outwards 10000Rent 869 Stock taken Over 4200Return funds to customers 5000 Goods Stolen $(1500+1500) 3000Wages 2500Commission $(1875+1271) 3146Share of ProfitChan (2/6) 9120Lau (1/6) 4560Lee (1/6) 4560Ng (2/6) 9120 27360

224975 224975

Memorandum Joint Venture Account

Working 1:$(60000+55000+30000+7500+25425+29850)

Here are some questions!

Can you do them?

Question 1

What is the mark-up?

1/2

1/3

1/4

1/5

Are you sure ???

It is the final answer???

Press me Yes

Press me No

Yeah~~~

BINGO

Press me

Oh~~~Oh~~~

you are wrong !!!~~~you are wrong !!!~~~

The answer is (a) 1/2

Press me

Question 2

What is the profit margin???~~~

1/2

1/3

1/4

1/5

Yeah~~~

BINGO

Press me

Oh~~~

You are wrong!!!~~~

The answer is (b) 1/3

Press me

Question 3

How much profit did the joint venture earned???

27340

27350

27360

27370

Are you sure???

Yes

No

O..Yeah!!~~

You are right

Press me

O…Sorry~~

You are wrong!!!~~

★The answer is 27360★

Press me

Question 4

Who get the great profit?

Chan & Lau

Ng & Lee

Chan & Ng

Lau & Lee

RIGHT~~~Viva

Press me

Sorry…

Your are WRONG

＊ The answer is Chan & Ng＊

Press me

Yeah~~~

Give me five~~~

Bingo

Press me

Question 5

Who made the greatest amount of sales???

Chan

Lau

Lee

Ng

Sorry

Let’s try again!!!~~~ §The answer is Chan§

Press me