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 |