Question

34. Rain and Shower are iron and steel merchants. Each carries on his own business.
From time to time, however, they enter into joint transactions and share profits and
losses equally, passing those entries for which they are responsible through their own
books of account and rendering each other statements of business done,
The following transactions took place during 2014 :
January : Rain bought scrap for 24,800 and paid 600 for storage.
February : Shower sold part of this scrap for * 28,400 and Rain disposed of the rest for
3,000.
March : Shower bought steel for 67,600 and paid 1,200 for storing and delivery.
Rain sold half of this steel for * 1,05,000 paying commission and advertising
amounting to 1,300. The remainder, which was unsold, was taken into
Shower's own stock at a value of 37,180.
It was agreed that Rain and Shower should be allowed 4,800 and 3,200 respectively
for general expenses of the venture.
Prepare a statement showing the result of all these transactions and show the entries
in each party's books.​

Answer 1

Answer:

Rain and Shower are iron and steel merchants. Each carries on his own business.

From time to time, however, they enter into joint transactions and share profits and

losses equally, passing those entries for which they are responsible through their own

books of account and rendering each other statements of business done,