### Joint venture X,Y and Z entered into a Joint Venture to sell a certain plot of land.

X,Y and Z entered into a Joint Venture to sell a certain plot of land. They contributed Rs. 25,000 each. They purchased land of 5,000 sq. m. at Rs. 10 per sq. m. 1/5th of the land was left over for public roads and the balance was divided into 8 plots of equal size. A plan was got prepared for Rs. 2,000 and other expenses were Rs. 3,500. 5 plots were sold @ Rs, 15 per sq. m. and 3 plots were sold @ Rs. 14 per sq. m. Prepare joint venture A/c Joint Bank A/c and Co – Venturer’s A/c. Pass journal entries.
Solution:
Journal Entries in the Books of Joint venture
 Date Particulars Lf Debit (Rs.) Credit (Rs.) ? 1. Joint Bank A/c ………… Dr. To x's A/cTo y's A/cTo z's A/c[Being the initial contribution is made] 75000 250002500025000 2. Joint venture a/c ………… Dr. To Joint bank a/c[Being 5000 sq. m. of land @ Rs. 10 per square meter were purchased] 50000 5000 3. Joint venture A/c ……… Dr. To Joint Bank A/c[Being the plan prepared & other expenses paid] 5500 5500 4. Joint Bank A/c ……… Dr. To Joint venture A/c[Being 5 plots of 500 sq. m. each sold @ Rs. 15 per square meter] 37500 37500 5. Joint Bank A/c ………… Dr.To Joint venture A/c [Being 3 plots of 500 sq. m. each sold @ Rs. 14 per sq. m.] 21000 21000 6. Joint venture A/c ……… Dr. To x's A/cTo Y's a/cTo Z's A/c[Being the profit made on Joint venture] 3000 100010001000 7. X's a/c ……… Dr.. Y's A/c ……… Dr. Z's A/c ………Dr. To Joint Bank A/c[Being the final settlement is made] 260002600026000 78000