(a)[9]
Prepare the joint venture account for this venture.
(b)[5]
Prepare Bonnie’s account in the books of the joint venture.
(c)[5]
Calculate the increase in gross profit expected if the proposed joint venture goes ahead.
(d)[4]
Advise Amit and Bonnie whether they should go ahead with the proposed joint venture. Justify your answer.
(e)[2]
Explain how a party to a joint venture, who must pay money into its bank account at the end of the venture, is similar to a partner with a debit balance on the current account.