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Q: B and C enter a joint venture to prepare a film for the Government. The Government agrees to pay Rs.1,00,000. B contributes Rs.10,000 and C contributes Rs.15,000. These amounts are paid into a Joint Bank Account. Payments made out of the joint bank account were:
Purchase of equipment 6,000
Hire of equipment 5,000
Office expenses 5,000
B paid Rs.2,000 as licensing fees. On completion, the film was found defective and Government made a deduction of Rs.10,000. The equipment was taken over by C at a valuation of Rs.2,000.
Separate books were maintained for the joint venture whose profits were divided in the ratio of B-2/5 and C-3/5. Give ledger accounts.