Joint venture X,Y and Z entered into a Joint Venture to sell a certain plot of land.

X,Y and Z entered into a Joint Venture to sell a certain plot of land. They contributed Rs. 25,000 each. They purchased land of 5,000 sq. m. at Rs. 10 per sq. m. 1/5^th of the land was left over for public roads and the balance was divided into 8 plots of equal size. A plan was got prepared for Rs. 2,000 and other expenses were Rs. 3,500. 5 plots were sold @ Rs, 15 per sq. m. and 3 plots were sold @ Rs. 14 per sq. m. Prepare joint venture A/c Joint Bank A/c and Co – Venturer’s A/c. Pass journal entries.

Solution:

Journal Entries in the Books of Joint venture

Date	Particulars	Lf	Debit (Rs.)	Credit (Rs.)
? 1.	Joint Bank A/c ………… Dr. To x's A/c To y's A/c To z's A/c [Being the initial contribution is made]		75000	25000 25000 25000
2.	Joint venture a/c ………… Dr. To Joint bank a/c [Being 5000 sq. m. of land @ Rs. 10 per square meter were purchased]		50000	5000
3.	Joint venture A/c ……… Dr. To Joint Bank A/c [Being the plan prepared & other expenses paid]		5500	5500
4.	Joint Bank A/c ……… Dr. To Joint venture A/c [Being 5 plots of 500 sq. m. each sold @ Rs. 15 per square meter]		37500	37500
5.	Joint Bank A/c ………… Dr. To Joint venture A/c [Being 3 plots of 500 sq. m. each sold @ Rs. 14 per sq. m.]		21000	21000
6.	Joint venture A/c ……… Dr. To x's A/c To Y's a/c To Z's A/c [Being the profit made on Joint venture]		3000	1000 1000 1000
7.	X's a/c ……… Dr.. Y's A/c ……… Dr. Z's A/c ………Dr. To Joint Bank A/c [Being the final settlement is made]		26000 26000 26000	78000

Joint venture X,Y and Z entered into a Joint Venture to sell a certain plot of land.

X,Y and Z entered into a Joint Venture to sell a certain plot of land. They contributed Rs. 25,000 each. They purchased land of 5,000 sq. m. at Rs. 10 per sq. m. 1/5^th of the land was left over for public roads and the balance was divided into 8 plots of equal size. A plan was got prepared for Rs. 2,000 and other expenses were Rs. 3,500. 5 plots were sold @ Rs, 15 per sq. m. and 3 plots were sold @ Rs. 14 per sq. m. Prepare joint venture A/c Joint Bank A/c and Co – Venturer’s A/c. Pass journal entries.

Solution:

Journal Entries in the Books of Joint venture

Date	Particulars	Lf	Debit (Rs.)	Credit (Rs.)
? 1.	Joint Bank A/c ………… Dr. To x's A/c To y's A/c To z's A/c [Being the initial contribution is made]		75000	25000 25000 25000
2.	Joint venture a/c ………… Dr. To Joint bank a/c [Being 5000 sq. m. of land @ Rs. 10 per square meter were purchased]		50000	5000
3.	Joint venture A/c ……… Dr. To Joint Bank A/c [Being the plan prepared & other expenses paid]		5500	5500
4.	Joint Bank A/c ……… Dr. To Joint venture A/c [Being 5 plots of 500 sq. m. each sold @ Rs. 15 per square meter]		37500	37500
5.	Joint Bank A/c ………… Dr. To Joint venture A/c [Being 3 plots of 500 sq. m. each sold @ Rs. 14 per sq. m.]		21000	21000
6.	Joint venture A/c ……… Dr. To x's A/c To Y's a/c To Z's A/c [Being the profit made on Joint venture]		3000	1000 1000 1000
7.	X's a/c ……… Dr.. Y's A/c ……… Dr. Z's A/c ………Dr. To Joint Bank A/c [Being the final settlement is made]		26000 26000 26000	78000

Joint venture Ram and Rajiv entered into a Joint venture to construct a conference hall

Ram and Rajiv entered into a Joint venture to construct a conference hall at a contract price of Rs. 3,00,000. Ram contributed Rs. 1,00,000 and Rajiv contributed Rs. 1,50,000. Ram brought in material worth Rs. 2,000 and Rajiv Paid transportation charges worth Rs. 6,000 Plant was purchased for Rs. 50,000 and material worth Rs. 2,00,000 were also purchased. On completion, plant was sold for Rs. 20,000. Due to certain defect, one bill of Rs. 20,000 was not recovered and the balance was received in cash. Venturers share profits in the ratio of their initial contributions. Prepare Joint Venture A/c, Joint Bank A/c and Co – venturer’s A/c and pass Journal entries.

Solution:

Journal entries in the books of Joint venture

Date	Particulars	Lf	Debit (Rs.)	Credit (Rs.)
? 1.	Joint Bank A/c ……… Dr. To Ram's A/c To Rajiv's A/c [Being the initial contribution is made]		250000	100000 150000
2.	Joint venture A/c ……… Dr. To Ram's A/c To Rajiv's A/c [Being the material purchased and transportation charges paid]		8000	2000 6000
3.	Joint venture A/c …………. Dr. To Joint Bank A/c [Being the materials purchased and plant purchased]		250000	250000
4.	Joint Bank A/c ……… Dr. To Joint venture A/c [Being the plant was sold]		20000	20000
5.	Joint Bank A/c ……… Dr. To Joint venture A/c [Being the contract price received after the deduction of Rs. 20000]		280000	280000
6.	Joint venture A/c ……… Dr. To Ram's A/c To Rajiv's A/c [Being the profit made on joint venture]		42000	14800 25200
7.	Ram's A/c ………… Dr. Rajiv's A/c ………… Dr. To Joint Bank A/c [Being the final settlement is made]		118800 181200	297000

Joint venture Ram and Rajiv entered into a Joint venture to construct a conference hall

Ram and Rajiv entered into a Joint venture to construct a conference hall at a contract price of Rs. 3,00,000. Ram contributed Rs. 1,00,000 and Rajiv contributed Rs. 1,50,000. Ram brought in material worth Rs. 2,000 and Rajiv Paid transportation charges worth Rs. 6,000 Plant was purchased for Rs. 50,000 and material worth Rs. 2,00,000 were also purchased. On completion, plant was sold for Rs. 20,000. Due to certain defect, one bill of Rs. 20,000 was not recovered and the balance was received in cash. Venturers share profits in the ratio of their initial contributions. Prepare Joint Venture A/c, Joint Bank A/c and Co – venturer’s A/c and pass Journal entries.

Solution:

Journal entries in the books of Joint venture

Date	Particulars	Lf	Debit (Rs.)	Credit (Rs.)
? 1.	Joint Bank A/c ……… Dr. To Ram's A/c To Rajiv's A/c [Being the initial contribution is made]		250000	100000 150000
2.	Joint venture A/c ……… Dr. To Ram's A/c To Rajiv's A/c [Being the material purchased and transportation charges paid]		8000	2000 6000
3.	Joint venture A/c …………. Dr. To Joint Bank A/c [Being the materials purchased and plant purchased]		250000	250000
4.	Joint Bank A/c ……… Dr. To Joint venture A/c [Being the plant was sold]		20000	20000
5.	Joint Bank A/c ……… Dr. To Joint venture A/c [Being the contract price received after the deduction of Rs. 20000]		280000	280000
6.	Joint venture A/c ……… Dr. To Ram's A/c To Rajiv's A/c [Being the profit made on joint venture]		42000	14800 25200
7.	Ram's A/c ………… Dr. Rajiv's A/c ………… Dr. To Joint Bank A/c [Being the final settlement is made]		118800 181200	297000

joint venture Raghu and Ramesh entered into a joint venture

Raghu and Ramesh entered into a joint venture to produce an advertisement film for Bharati Traders, at a contract price of 40,000. Raghu contributed Rs. 10, 000 and Ramesh Rs. 20,000 and opened a joint account in the bank with these contributions. Raghu purchases from his own funds raw film for Rs. 8, 000 and a Camera for Rs. 7,000 for joint venture. They Paid from the Joint Bank Account: Artist’s fees Rs. 18, 000, Hire of sets Rs. 2,000 and technician Charges RS. 10,000. The firm was completed but due to certain defects in the firm, the contract Price was reduced by 10% the amount being received by cheque from Bharati Traders. At the end of venture, the camera was sold for Rs. 5,000 and Ramesh took over the unused film for Rs. 400. Raghu and Ramesh shared profit and losses in the proportion of 1:2 and settled account of the venture. Prepare the Joint venture Account the Joint Bank account and the accounts of the Co – ventures.

Solution:

Journal entries in the books of Joint venture

Date	Particulars	Lf	Debit (Rs.)	Credit (Rs.)
? 1.	Joint Bank A/c ………… Dr. To Raghu's A/c To Ramesh's A/c [Being the initial contribution is made]		30000	10000 20000
2.	Joint venture A/c ……… Dr. To Raghu's A/c [Being the raw film and camera purchased]		15000	15000
3.	Joint venture A/c ………… Dr. To Joint Bank A/c [Being the artists fees, hire of sets and technician charges paid]		30,000	30000
4.	Joint Bank A/c ………… Dr. To Joint venture A/c [Being the contract price received after a deduction of 10%]		36,000	36,000
5.	Joint Bank A/c ………… Dr. To Joint venture A/c [Being the camera was sold]		5000	5000
6.	Ramesh's A/c ……… Dr. To Joint venture A/c [Being the unused film was taken over]		400	400
7.	Raghu's A/c ………… Dr. Ramesh's A/c ……… Dr. To Joint venture A/c [Being loss made on joint venture]		1200 2400	3600
8.	Raghu's A/c ………… Dr. Ramesh's A/c …… Dr. To Joint Bank A/c [Being the final settlement is made]		23800 17200	41000