ILLUSTRATION 11 A and B entered into a joint venture of underwriting the subscription at par of 50,000 shares of 10 each of a joint stock company. They agreed to share profits or losses in the ratio of three-fifths and two-fifths respectively. The consideration for guaranteeing the subscription was 500 other shares of 10 each fully paid to be issued to them. The public took up 48,000 shares and the remaining shares of the guaranteed issue were taken by A and B who provide cash equally. The entire shareholding of the venture was then sold through other brokers, 60 per cent at a price of 9.50 less brokerage 50 paise per share, 20 per cent at 9.75 less brokerage 50 paise per share and the balance were taken over by A and B equally at 9 per share. The share proceeds were collected by A. Give journal entries in the books of A and B and also show a Memorandum Joint Venture Account and Joint Venture with B in the books of A and Joint Venture with A in the books of B assuming that the final settlement of account was made between A and B.​