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. 1/5^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 [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

Joint venture Ram and Rajiv entered into a Joint venture to construct a conference hall

Ram and Rajiv entered into a Joint venture to construct a conference hall at a contract price of Rs. 3,00,000. Ram contributed Rs. 1,00,000 and Rajiv contributed Rs. 1,50,000. Ram brought in material worth Rs. 2,000 and Rajiv Paid transportation charges worth Rs. 6,000 Plant was purchased for Rs. 50,000 and material worth Rs. 2,00,000 were also purchased. On completion, plant was sold for Rs. 20,000. Due to certain defect, one bill of Rs. 20,000 was not recovered and the balance was received in cash. Venturers share profits in the ratio of their initial contributions. Prepare Joint Venture A/c, Joint Bank A/c and Co – venturer’s A/c and 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 Ram's A/c To Rajiv's A/c [Being the initial contribution is made]		250000	100000 150000
2.	Joint venture A/c ……… Dr. To Ram's A/c To Rajiv's A/c [Being the material purchased and transportation charges paid]		8000	2000 6000
3.	Joint venture A/c …………. Dr. To Joint Bank A/c [Being the materials purchased and plant purchased]		250000	250000
4.	Joint Bank A/c ……… Dr. To Joint venture A/c [Being the plant was sold]		20000	20000
5.	Joint Bank A/c ……… Dr. To Joint venture A/c [Being the contract price received after the deduction of Rs. 20000]		280000	280000
6.	Joint venture A/c ……… Dr. To Ram's A/c To Rajiv's A/c [Being the profit made on joint venture]		42000	14800 25200
7.	Ram's A/c ………… Dr. Rajiv's A/c ………… Dr. To Joint Bank A/c [Being the final settlement is made]		118800 181200	297000

joint venture Raghu and Ramesh entered into a joint venture

Raghu and Ramesh entered into a joint venture to produce an advertisement film for Bharati Traders, at a contract price of 40,000. Raghu contributed Rs. 10, 000 and Ramesh Rs. 20,000 and opened a joint account in the bank with these contributions. Raghu purchases from his own funds raw film for Rs. 8, 000 and a Camera for Rs. 7,000 for joint venture. They Paid from the Joint Bank Account: Artist’s fees Rs. 18, 000, Hire of sets Rs. 2,000 and technician Charges RS. 10,000. The firm was completed but due to certain defects in the firm, the contract Price was reduced by 10% the amount being received by cheque from Bharati Traders. At the end of venture, the camera was sold for Rs. 5,000 and Ramesh took over the unused film for Rs. 400. Raghu and Ramesh shared profit and losses in the proportion of 1:2 and settled account of the venture. Prepare the Joint venture Account the Joint Bank account and the accounts of the Co – ventures.

Solution:

Journal entries in the books of Joint venture

Date	Particulars	Lf	Debit (Rs.)	Credit (Rs.)
? 1.	Joint Bank A/c ………… Dr. To Raghu's A/c To Ramesh's A/c [Being the initial contribution is made]		30000	10000 20000
2.	Joint venture A/c ……… Dr. To Raghu's A/c [Being the raw film and camera purchased]		15000	15000
3.	Joint venture A/c ………… Dr. To Joint Bank A/c [Being the artists fees, hire of sets and technician charges paid]		30,000	30000
4.	Joint Bank A/c ………… Dr. To Joint venture A/c [Being the contract price received after a deduction of 10%]		36,000	36,000
5.	Joint Bank A/c ………… Dr. To Joint venture A/c [Being the camera was sold]		5000	5000
6.	Ramesh's A/c ……… Dr. To Joint venture A/c [Being the unused film was taken over]		400	400
7.	Raghu's A/c ………… Dr. Ramesh's A/c ……… Dr. To Joint venture A/c [Being loss made on joint venture]		1200 2400	3600
8.	Raghu's A/c ………… Dr. Ramesh's A/c …… Dr. To Joint Bank A/c [Being the final settlement is made]		23800 17200	41000

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