A and B entered in to Joint Venture to construct a building
for X enterprises limited. The contract price was Rs. 2, 50,000. They opened
joint bank account and deposited Rs. 1,20,000 and Rs. 60,000 respectively and
agreed to share profits and losses in the ratio 3 : 2. The following transactions were made
from Joint Bank A/c: Wages – Rs. 70,000 and Material purchases – Rs. 1,25,000.
Apart from this A supplied material of Rs. 12,000 and B paid the architect fees
of Rs. 2,500 on completion of construction. X enterprises Ltd. paid the full
amount and unsold stock was taken over by B at an agreed value of Rs. 15,000.
Prepare Joint venture A/c, Joint Bank A/c and Co – venturer’s A/c.
Solution:
Journal entries in the books of Joint venture
Solution:
Journal entries in the books of Joint venture
Date
|
Particulars
|
Lf
|
Debit (Rs.)
|
Credit (Rs.)
|
? 1.
|
Joint Bank A/c ……… Dr.
To A's A/c
To B's A/c
[Being the initial contribution is made]
|
180000
|
120000
60000
|
|
2.
|
Joint venture A/c …… Dr.
To Joint Bank A/c
[Being the wages paid and material purchases]
|
195000
|
195000
|
|
3.
|
Joint venture A/c ……… Dr.
To A's A/c
[Being the material supplied]
|
12000
|
12000
|
|
4.
|
Joint venture A/c ……… Dr.
To B's A/c
[Being the architect fees paid] |
2500
|
2500
|
|
5.
|
Joint bank A/c ……… Dr.
To Joint venture A/c
[Being the contract Price received]
|
250000
|
250000
|
|
6.
|
B's A/c ……… Dr.
To Joint venture A/c
[Being the unsold stock of goods taken over]
|
15000
|
15000
|
|
7.
|
Joint venture A/c ………… Dr.
To A's A/c
To B's A/c
[Being profit made on joint venture]
|
55000
|
33300
22200
|
|
8.
|
A's A/c ………… Dr.
B's A/c ………… Dr.
To Joint Bank A/c
[Being the final settlement is made]
|
165300
69700
|
235000
|