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

Preparation of financial statements — practice question

Study Source A4 in the insert.
(a)[7]

Prepare the memorandum joint venture account. Dates do not need to be shown.

(b)[7]

Prepare the joint venture account with Adam in Mary’s books. Dates do not need to be included.

(c)[4]

Explain one benefit for Adam and one benefit for Mary of entering the joint venture.

(d)[3]

State three differences between a joint venture and a consignment.

(e)[4]

Explain two disadvantages for Adam of forming a partnership with Mary.

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