A and B were partners in a joint venture sharing profits and losses in the proportion of four-fifth and one –fifth respectively. A supplies goods to the value of 4000 and his expenses amounting to 300. B sell goods on behalf of the joint venture and realizes 12000. B is entitled to a commission of 5 percent on sales. B settles his accounts by bank draft.
(note: the ventures use their own books for recording and pay cash between each party. At the end of the accounting period)