(a)[9]
Prepare a memorandum joint venture account.
(b)[8]
Prepare the joint venture account in Ahmed’s books and show the balance due to or from Bashmir.
(c)[1]
State the heading in Ahmed’s statement of financial position under which the balance due will appear.
(d(i))[3]
Calculate the correct total profit for the joint venture, beginning from your answer to (a).
(d(ii))[1]
Calculate the extra profit payable to Ahmed from the joint venture.
(e)[3]
Evaluate whether Ahmed ought to have entered into the joint venture with Bashmir. Justify your answer.