Shalu and Bunti entered in joint venture to purchase and sale of imported goods. Shalu take the responsibility for purchase and Bunti for sale. It was decided that Shalu will get interest @ 12% p.a. on the purchase price of goods and Bunti get salary of Rs 500 per month. Shalu draw a bill of Rs 20,000 on Bunti for 3 months which was accepted by Bunti. Shalu imported goods worth Rs 90,000 and sent to Bunti. Shalu paid carriage expenses Rs 4,000 in dispatching goods. Bunti paid Rs 1,600 freight and Rs 1,400 for selling expenses. Bunti sold all the goods for Rs 1,30,000. Whole process completed in three months. Prepare necessary ledger accounts in the books of both parties. The profit was distributed equally.
