Chartered Accountancy

CPT Course

Session 1, Section A
Fundamentals of Accounting

Lecture 13 Joint Venture Accounting

1

2
Accounting Entries where separate set of books are maintained

Transaction
Initial Contribution by Coventurer
Exp. Out of Joint Bank
Account
Direct Exp. By Co-venturer
for Joint Venture
Sale or Payment received
Sale or Payment received by
Co-venturer directly
Profit on Joint Venture
Loss on Joint Venture
Closing Joint Bank Account

Accounting Entry
Joint Bank A/c Dr.
To Co-venturers A/c
Joint Venture A/c Dr.
To Joint Bank A/c
Joint Venture A/c Dr.
To Co-venturers A/c
Joint Bank A/c Dr.
To Joint Venture A/c
Co-venturers A/c Dr.
To Joint Venture A/c
Joint Venture A/c Dr.
To Co-venturers A/c
Co-venturers A/c Dr.
To Joint Venture A/c
Co-venturers A/c Dr.
To Joint Bank A/c

Accounting Entries Each Co-venturer keeps record of all

transactions
Transaction
For Supply of Goods to Joint
Venture out of business
For meeting Joint Venture
Exp.
Other co-venturer supplies
goods or meets exp.
Joint venture sale made by
self
Joint venture sale made by
other co-venturer
For Joint venture profit
For Joint venture loss
Settlement of dues

3
Accoun
ting
Entries
Each
Coventurer
keeps
record of
own
transactio
ns only

ICAI

Transaction
For Supply of Goods to Joint
Venture out of business
For meeting Joint Venture
Exp.
Other co-venturer supplies
goods or meets exp.
Joint venture sale made by
self
Joint venture sale made by
other co-venturer

Accounting Entry
Joint Venture A/c Dr.
To Purchase A/c
Joint Venture A/c Dr.
To Bank A/c
No Entry - Only entered in Memorandum
Joint Venture Account
Bank A/c Dr.
To Joint Venture A/c
No Entry - Only entered in Memorandum
Joint Venture Account

Quick Revision Notes

Transaction
For Joint venture profit
For Joint venture loss
Settlement of dues

Accounting Entry
Joint Venture A/c Dr.
To Purchase A/c
Joint Venture A/c Dr.
To Bank A/c
Joint Venture A/c Dr.
To Co-venturer A/c
Bank A/c Dr.
To Joint Venture A/c
Co-venturer Dr.
To Joint Venture A/c
Joint Venture A/c Dr.
To Profit & Loss A/c (own share)
To Co-venturer A/c (co-venturers share)
Profit & Loss A/c Dr. (own share)
Co-venturer A/c Dr. (co-venturers share)
To Joint Venture A/c
Co-venturer A/c
To Bank A/c

Accounting Entry
Joint Venture A/c
To Profit & Loss A/c
Profit & Loss A/c
To Joint Venture A/c
Joint Venture A/c
To Bank A/c

Dr.
Dr.
Dr.