Question

entries in the books of all co-ventures​

Answer 1

CHAPTER - 3

(ACCOUNTING FOR JOINT VENTURES)

METHODS FOR MAINTAINING JOINT VENTURE ACCOUNTS

METHOD 1 : WHEN SEPARATE SET OF BOOKS ARE MAINTAINED  Joint venture account  Co-venture ‘s account  Joint bank account

METHOD 2 : WHEN SEPARATE SET OF BOOKS ARE NOT MAINTAINED

CASE 1: When each co-ventures keep record of all transactions  Joint venture account  Co-venture’s account

CASE 2 : When each co-venture keep record of own transaction only  Memorandum joint venture account  Joint venture with co-venture account

METHOD 1 : WHEN SEPARATE SET OF BOOKS ARE MAINTAINED

JOURNAL ENTREIS

SL. NO PARTICULAR’S ENTRIE’S 1. When the contribution made by the co- venture’s Joint bank account Dr. To co-ventures’ account 2. When the expenses paid through joint bank account Joint venture account Dr. To joint bank account 3. When the expenses paid or materials supplied by the co-ventures from private account Joint venture account Dr. To co-venture account 4. When the sales proceeds or collections Joint bank account Dr. To joint venture account 5. When the collections received by co- ventures Co-ventures account Dr. To joint venture account 6. When the assets taken over by the co- venture’s Co-ventures account Dr. To joint venture account 7. When the liabilities taken over by the Joint venture account Dr.