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