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. 1/5 th 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 [B
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