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/c
To y's A/c
To z's A/c
[Being the initial contribution is made]

75000

25000
25000
25000
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/c
To Y's a/c
To Z's A/c
[Being the profit made on Joint venture]

3000

1000
1000
1000
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]

26000
26000
26000



78000

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