Aswin of Madras and Gupta of Delhi entered into a joint venture on 1.4.2014 for the purpose of buying second-hand cars for reconditioning and selling them as airconditioned diesel cars. Aswin agreed to buy second-hand cars and recondition them and fit diesel engines. Gupta agreed to fix airconditioners and sell them at Delhi. They agreed to share the profits and losses equally and settle their accounts at the end of each year.
The following are the details of purchase, sale and expenses incurred by Aswin and Gupta during the year 1.4.2014 to 31.3.2015 :