Chartered Accountancy CPT Course

Lecture 13 Joint Venture Accounting

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Accounting Entries where separate set of books are maintained
Accounting Entry Joint Bank A/c Dr. To Co-venturers A/c Joint Venture A/c Dr. To Joint Bank A/c Joint Venture A/c Dr. To Co-venturers A/c Joint Bank A/c Dr. To Joint Venture A/c Co-venturers A/c Dr. To Joint Venture A/c Joint Venture A/c Dr. To Co-venturers A/c Co-venturers A/c Dr. To Joint Venture A/c Co-venturers A/c Dr. To Joint Bank A/c

Session 1, Section A Fundamentals of Accounting

Quick Revision Notes

Accounting Entries Each Co-venturer keeps record of all transactions

Transaction For Supply of Goods to Joint Venture out of business For meeting Joint Venture Exp. Other co-venturer supplies goods or meets exp. Joint venture sale made by self Joint venture sale made by other co-venturer For Joint venture profit For Joint venture loss Settlement of dues Accounting Entry Joint Venture A/c Dr. To Purchase A/c Joint Venture A/c Dr. To Bank A/c Joint Venture A/c Dr. To Co-venturer A/c Bank A/c Dr. To Joint Venture A/c Co-venturer Dr. To Joint Venture A/c Joint Venture A/c Dr. To Profit & Loss A/c (own share) To Co-venturer A/c (co-venturers share) Profit & Loss A/c Dr. (own share) Co-venturer A/c Dr. (co-venturers share) To Joint Venture A/c Co-venturer A/c To Bank A/c

Transaction Initial Contribution by Coventurer Exp. Out of Joint Bank Account Direct Exp. By Co-venturer for Joint Venture Sale or Payment received Sale or Payment received by Co-venturer directly Profit on Joint Venture Loss on Joint Venture Closing Joint Bank Account

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Accoun ting Entries Each Coventurer keeps record of own transactio ns only
Transaction For Supply of Goods to Joint Venture out of business For meeting Joint Venture Exp. Other co-venturer supplies goods or meets exp. Joint venture sale made by self Joint venture sale made by other co-venturer Accounting Entry Joint Venture A/c Dr. To Purchase A/c Joint Venture A/c Dr. To Bank A/c No Entry - Only entered in Memorandum Joint Venture Account Bank A/c Dr. To Joint Venture A/c No Entry - Only entered in Memorandum Joint Venture Account

Transaction For Joint venture profit For Joint venture loss Settlement of dues

Accounting Entry Joint Venture A/c To Profit & Loss A/c Profit & Loss A/c To Joint Venture A/c Joint Venture A/c To Bank A/c

Dr. Dr. Dr.

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