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
|
Advertisement
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