Solution:
Journal entries in the books of Joint venture
Date
|
Particulars
|
Lf
|
Debit (Rs.)
|
Credit (Rs.)
|
? 1.
|
Joint Bank A/c ……… Dr.
To A's A/c
To B's A/c
[Being the initial contribution is made]
|
180000
|
120000
60000
|
|
2.
|
Joint venture A/c …… Dr.
To Joint Bank A/c
[Being the wages paid and material purchases]
|
195000
|
195000
|
|
3.
|
Joint venture A/c ……… Dr.
To A's A/c
[Being the material supplied]
|
12000
|
12000
|
|
4.
|
Joint venture A/c ……… Dr.
To B's A/c
[Being the architect fees paid] |
2500
|
2500
|
|
5.
|
Joint bank A/c ……… Dr.
To Joint venture A/c
[Being the contract Price received]
|
250000
|
250000
|
|
6.
|
B's A/c ……… Dr.
To Joint venture A/c
[Being the unsold stock of goods taken over]
|
15000
|
15000
|
|
7.
|
Joint venture A/c ………… Dr.
To A's A/c
To B's A/c
[Being profit made on joint venture]
|
55000
|
33300
22200
|
|
8.
|
A's A/c ………… Dr.
B's A/c ………… Dr.
To Joint Bank A/c
[Being the final settlement is made]
|
165300
69700
|
235000
|