DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : Y. Yella Reddy
Designation : HCCP
Branch : DCCP
Institute : 026, S.G.Govt. Polytechnic, Adilabad
Year/Semester : IV Semester
Subject : Accountancy – III
Subject Code : CCP402
Topic : Joint Venture
Duration : 50 Mts
Sub Topic : Accounts kept by all Co-Venturers
Teaching aids : PPT and Animations
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Objectives :

On completion of the period, you would be

able to know:
 Maintenance of accounts by all Co-Venturers

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Recap :

In the last class you learned about:

 Maintenance of accounts by one Venturer

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Accounts are kept by all Co-
Venturers :

 Under this method all the co-venturers maintain

the accounts in their respective books relating to
Joint Venture
 Each venturer will convey his transactions of
Joint Venture to other venturers
 Every venturer will prepare his own Joint
Venture account and also the personal accounts
of other venturers
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Journal Entries when Accounts kept
by all Co-Venturers :

1) When a venturer buys goods:

Joint Venture a/c Dr.
To Cash
(Being the goods purchased)
1) When other co-venturers purchases goods:
Joint Venture a/c Dr.
To other co-venturer/s a/c

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3) For expenses incurred:
(i) When Venturer Incurred Expenses
Joint Venture a/c Dr.
To Cash a/c
(ii) When other Venturer Incurred Expenses:
Joint Venture a/c Dr.
To other Co-Venturer’s a/c

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4) When the goods are sold by the venturer himself
(a) Cash Sales:
Cash a/c Dr.
To Joint Venture a/c
(b) Credit Sales:
Debtor’s Personal a/c Dr.
To Joint Venture a/c

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5) When other co-venturers sold goods
Other Co-Venturer’s a/c Dr.
To Joint Venture a/c

6) Sales by Agent
Agent’s a/c Dr.

To Joint Venture a/c

(Being goods sold by agent)

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7) Draw and Discounting of Bill of Exchange
Bills Receivable a/c Dr.
To Co-Venturer’s a/c

8) For Discounting the bill

Cash / Bank a/c Dr.
Joint Venture (Discount) a/c Dr.
To Bills Receivable a/c

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9) In the books of other Venturers for Discount
Joint Venture a/c Dr.
To other Venturer’s a/c
(who discounted the bill)

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10) When there is profit on Joint Venture
Joint Venture a/c Dr.
To P & L a/c (own profit)
To Other Co-Venturers a/c
(share of other Venturer’s profit)
11) If there is loss on Joint Venture
P & L a/c Dr.
Other Co-Venturer’s a/c Dr.
To Joint Venture a/c

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12) When other Co-Venturers settles their account
(i) Other Co-Venturer’s a/c Dr.
To Cash a/c

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Summary :

 Accounts kept by all Co-Venturers

 Joint venture account
 Personal accounts of other venturers
 Model entries

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Quiz :

1. When goods are purchased for the Joint

Venture the account to be debited is:
a) Purchases account
b) Venturer’s Capital account
c) Joint Venture account

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2. If goods to the Joint Venture are brought in
by a Co-Venturer then his capital a/c is
a) Debited
b) Credited
c) Not Recorded

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3. Discount on bill of exchange (B/R) by Co-
Venturer in Joint Venture is debited to
a) Discount account
b) Joint Venture account
c) Drawee’s account
d) None of the above

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Frequently Asked Questions :

1. Briefly explain about the Joint Venture

transactions recorded by all Venturers ?

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