Reference no: EM133161432

Question - Joint Venture. Butch, Alex and Roy combined their resources to buy and sell electronic gadgets imported from Singapore for a duration of three months starting October 1, 2015. Butch, as purchasing manager, will be allowed a 5% commission on net purchases. Profit is to be divided equally among them. Venture transactions are as follows:

Oct 1 Butch contributed P350,000 to the venture and required the other participants to do the same

Oct 3 Butch went to Singapore to buy the imported gadgets. Transportation, accommodation and food spent amounted to 200,000. The goods purchased amounted to 1,000,000 requiring a 50% down payment with the balance payable after three months

Oct 6 A stall was rented in Greenhills, advanced rental paid, 15,000

Oct 31 Summary of cash sales: P500,000 net of 50,000 operating expenses

Nov. 2 Advance rental was paid

Nov. 22 Total operating expenses paid, 75,000

Nov. 30 Summary of cash sales, 750,000

Dec. 1 Advance rental was paid

Dec. 25 Operating expenses paid, 125,000

Dec. 26 Butch got his 5% commission

Dec. 30 Summary of Cash sales, 1,500,000

Jan. 2 The balance due to the supplier was paid

Jan. 4 Unsold goods were taken by Alex, 20,000 and Roy 40,000

Jan. 5 Cash is distributed to the operators

Required - Entries in each of the business books of the venturers, Bert and Oscar, using the title Investment in Joint Venture. Construct Investment T accounts for each investor.