entries in the books of all co-ventures
Answers
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.