joint venture summary notes

joint venture summary notes and practical questions

Each  co – venture keeps records of own transactions only

Under this method following two accounts are prepared separately, there is no double entry.

Memorandum joint venture account

Joint venture with other co-venture account

Memorandum joint venture account is a similar profit and loss account, in this account income will be credited and expenses will be debited.

Profit and loss will be calculated.

No party or bank account is used but name of income or expense account will be used while preparing this account.

Joint venture with other co-venture account

It is a personal account, records only own transactions like goods sold, expenses incurred, goods purchased or supplied etc. own profit of MJV will be transferred to this account, remittance to coventure will be calculated.

Any transactions of other co venture will not be recorded any where in this account.

 

 

 

 

 

 

 

 

 

 

 

 

A and B are coventures having profit and loss ratio 3:2. A contribute 10,000 and B 20,000

A supplied goods of  3,000 and   B 2,000.

Firm incurred expenses freight 500, cartege 1,000.

Firm purchase goods of Rs. 20,000.

A incurred expenses 300 and B 200 on behalf of firm.

Firm sold goods in Rs. 30,000 and balance carried by A 8,000 and B 9,000.

Pass journal entries and prepare necessary accounts.

 

 

 

 

 

A and B are coventures having profit and loss ratio 3:2. A supplied goods of  3,000 and   B 2,000.

Firm incurred expenses freight 500, cartege 1,000.

B supplied goods of Rs. 20,000.

A incurred expenses 300 and B 200 on behalf of firm.

Firm sold goods in Rs. 30,000 and balance carried by A 8,000 and B 9,000.

Pass journal entries and prepare necessary accounts.

 

 

 

 

 

X  and Y are co ventures. Profit and loss ration 2:1.X supplied goods Rs. 1,00,000 to Y by incurring expenses Rs. 10,000

Y supplied goods RS. 70,000 to x by incurring expenses Rs. 7,000.

Y sold 80 % of goods received at Rs. 95,000 and remaining carried by him at 90% of original purchase cost only.

X sold 70 % of goods received at Rs. 65,000 and remaining carried by him at 80% of original purchase cost plus proportionate expenses.

Prepare Joint venture account and Y’s account in the books of X.

 

 

 

 

 

In the books of X

 

Joint venture account

Particular Rs. Particular Rs.
To purchase 1,00,000 By Y-sale 95,000
To bank exp.   10,000       Goods 18,000
To Y – goods 70,000 By  bank 65,000
–      Exp.   7,000     Drawings 18,480
P & L –  6,320
Y       –   3,160
    9,480
196480 196480

Drawings of Y       1,00,000*20/100=20,000*90%=18,000

Goods held by X 70,000*30=21,000

Purchase cost                            21,000

proportionate expenses

70,000    :   7,000

21,000    :                                       2,100

                                          23,100 *80%= 18480

Y’s Account

Particular Rs. Particular Rs.
To J.V. sales  95,000 By J.V. Goods 70,000
            Goods  18,000 By J.V.  Exp.   7,000
            Profit   3,160
By bank   32,840
1,13,000 1,13,000

 

 

 

 

 

 

 

 

 

X  and Y are co ventures. Profit and loss ratio 1:1. X supplied goods Rs. 70,000 to Y by incurring expenses Rs. 3,500

Y supplied goods RS. 60,000 to x by incurring expenses Rs. 3,000.

Y sold 80% of goods received at Rs. 75,000 and remaining goods are lost in godown, insurance company paid 2,000.

X sold 70 % of goods received at Rs. 55,000 and remaining goods lost, insurance company paid 50% of original purchase cost plus proportionate expenses.

Prepare Joint venture account and Y’s account in the books of X.

 

 

 

 

 

In the books of X

Joint venture account

Particular Rs. Particular Rs.
To purchase   70,000 By Y-sale 75,000
To bank exp.    3,500             insurance  2,000
To Y – goods   60,000 By  bank 55,000
–      Exp.     3,000    insurance   9,450
P & L –    2,475
Y       –    2,475   4,950
1,41,450 1,41,450

Goods held by X 60,000*30=18,000

Purchase cost                             18,000

proportionate expenses

60,000    :   3,000

18,000                                               900

18,900*50%

=    9,450

Y’s Account

Particular Rs. Particular Rs.
To J.V. sales  95,000 By J.V. Goods 70,000
            Goods  18,000 By J.V.  Exp.   7,000
            Profit   3,160
By bank   32,840
1,13,000 1,13,000

 

 

 

 

 

Leave a Comment

Your email address will not be published. Required fields are marked *

error: Please do not copy :)
Scroll to Top