Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

Consult Source A4 in the insert. This question is about the accounting records of a joint venture.
(a)[3]

Calculate the sales revenue of the joint venture.

(b(i))[5]

In the joint venture books, prepare the joint venture account.

(b(ii))[4]

In the joint venture books, prepare Amit account.

(b(iii))[4]

In the joint venture books, prepare Barry account.

(b(iv))[4]

In the joint venture books, prepare the joint venture bank account.

(c)[2]

Suggest two methods by which profit could be increased if the joint venture were repeated at the next festival.

(d)[3]

Advise Amit whether he ought to agree to repeat the joint venture if Clara were added as a third party. Support your answer.

Worked solution & mark scheme

This 25-mark question has a full step-by-step worked solution and mark scheme. One marking point: 900 \times 1.8 = 1 620

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