Accounting 9706 · AS & A Level · Preparation of financial statements
Preparation of financial statements — practice question
Kia and Zarina formed a joint venture, with profits and losses shared in the ratio $3:2$ respectively. Each one entered her own transactions in her own books of account.
(a)[4]
Calculate the profit or loss made by the joint venture.
(b(i))[8]
Prepare Kia’s account for the joint venture in Zarina’s books of account.
(b(ii))[6]
Prepare Zarina’s account for the joint venture in Kia’s books of account.
(c)[2]
Explain one advantage for both Kia and Zarina of setting up a joint venture.
(d)[5]
Advise Kia whether she ought to enter into a partnership with Zarina. Justify your answer.
Worked solution & mark scheme
This 25-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Sales total (950 + 840) = 1 790” …