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Joint venture

Arbind of Calcutta and Brown of Bombay entered into a joint venture in regard to a consignment of radio sets to be sent from London for sale in this country and they agreed to share profits equally. On 15th May, 2015, Brown purchased 1,000 sets at ~ 25,000 per hundred subject to 30% trade discount and paid freight and insurance charges amounting to ~ 15,000. He also drew a bill of exchange on Arbind payable on sight for ~ 2,00,000 discounting it with the Chartered Bank for ~ 1,96,640. Arbind received the consignment on 26th July, 2015 and he paid landing and other charges amounting to ~ 2,950 and on 31st July, he sold the whole consignment for ~ 3,10,000 and paid the bill of exchange under discount, the discount amounting to ~ 550. Arbind paid incidental expenses amounting to ~ 670 and Brown paid ~ 745.

Draw up the Memorandum Joint Venture Account and determine the share of profit of each partner.

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