Joint venture Sanjay, Ajay and Vijay entered into a Joint venture


Sanjay, Ajay and Vijay entered into a Joint venture for construction of a building for contract price of Rs. 6, 00,000. Payable in cash Rs. 4,00,000 and Rs. 2,00,000 in debentures. They decided to share profits and losses in the ratio of their initial contributions. They opened Joint Bank A/c. where Sanjay deposited Rs. 3,00,000 Ajay Deposited Rs. 2,00,000 and Vijay deposited Rs. 1,00,000. The following payments are made out through Joint Bank A/c . Purchase of material Rs. 2,50,000, Plant Rs. 45,000, Wages – Rs. 77,000 and other charges Rs. 11,000. Sanjay brings truck of Rs. 40,000. Ajay brings materials of Rs. 55,000 and Vijay brings mixture of Rs. 10,000. At the end of the venture unused material was taken over by Sanjay for Rs. 5,000. Ajay took over mixture for Rs. 15,000 and Vijay took over Plant for Rs. 12,000. The truck was sold in the market for Rs. 22,000. Contract price was received and debentures were taken over by Vijay for Rs. 1,90,000. Prepare Joint Venture A/c., Joint Bank A/c.,  and Co – ventures A/c.
Solution:
Date
Particulars
Lf
Debit (Rs.)
Credit (Rs.)
? 1.
Joint Bank A/c ………Dr.
To Sanjay's A/c
To Ajay's A/c
To Vijay's A/c
[Being the initial contribution is made]

600000

300000
200000
100000
2.
Joint venture A/c ……… Dr
To Joint Bank A/c
[Being the materials & plants purchased & wages & other charges paid]

383000

383000
3.
Joint venture A/c …… Dr.
To Sanjay's A/c
To Ajay's A/c
To Vijay's a/c
[Being Materials, truck and mixtures brought]


105000

40000
55000
10000
4.
Sanjay's A/c ……… Dr.
Ajay's A/c ……… Dr.
Vijay's A/c … …… Dr.
To Joint venture A/c
[Being the unused materials, mixtures and plant were taken over]

5000
15000
12000



32000
5.
Joint Bank A/c ……… Dr.
To Joint venture A/c
[Being the truck sold in the market]

22000

22000
6.
Joint Bank A/c …… Dr.
Debenture's A/c ………… Dr.
To Joint venture A/c
[Being the contract price received]


400000
200000


600000
7.
Vijay's A/c ……… Dr.
To Debentures A/c
[Being the debentures are taken over at discount]

1900000

190000
8.
Joint venture A/c ……… Dr.
To Debenture's A/c
[Being discount made on debentures]

10000

10000
9.
Joint venture A/c ……… Dr.
To Sanjay's A/c
To Ajay's A/c
To Vijay's A/c
[being the profit made on joint venture]

156000


78000
52000
26000
10.
Sanjay's A/c ……… Dr.
Ajay's A/c ……… Dr.
To Joint Bank A/c
[Being the final settlement is made]


413000
292000


705000
11.
Joint Bank A/c ……… Dr.
To Vijay's A/c
[Being the final settlement is made]

66,000

66000

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