Journal Entry For Joint Venture

1

For initial contribution of Capital by Co-ventures (i.e., A & B) Joint Bank A/c    Dr.   To A's A/c   To B's A/c  (Being capital contributed by co-ventures)

2

For Purchase of goods / expenses incurred out   of Joint Bank A/c:  Joint Venture A/c   Dr   To Joint Bank A/c (Being goods Purchased and expenses incurred)

3

For expenses paid personally by Co-venture Joint Venture A/c                             Dr.   To A's A/c   To B's A/c  (Being expenses paid by A & B)

4

 For goods purchased on credit : Joint Venture A/c   Dr  To Creditors A/c  (Being goods Purchased on credit)

5

For payment to Creditors (out of Joint Bank A/c): Creditors A/c    Dr.  To Joint Bank A/c  (Being payment made to creditors)

6

For Sale of goods and Proceeds deposited in joint Bank Account: Joint bank A/c   Dr To Joint venture A/c  (Being goods sold for cash)

7

For Sale of goods and proceeds retained by coventurer: A's  A/c    Dr. B's  A/c    Dr. To Joint venture A/c  (Being goods sold and proceeds retained by A & B)

8

For goods sold on credit:  Debtors Account To Joint venture A/c  (Being goods sold on credit)

9

For amount received from Debtors: (deposited into the Joint Bank A/c) Joint Bank A/c  Dr.  To Debtors Account  (Being amount received from Debtors)

10

For Stock taken over by co-venture. A 's A/c B's A/c  To Joint venture A/c (Being goods taken over by A & B)

11

For commission/ interest Payable to co- venture: Joint Venture Account  Dr. To A's A/c To B's A/c (Being commission/ interest payable to A & B)

12

For Profit on Joint venture: Joint venture A/c  To A's A/c  To B's A/c (Being Profit on Joint venture credited to A & B)

13

For refund of amount to co-venture:           A’s A/C                               Dr           B’s  A/C                               Dr                   To joint bank A/c (Being payment made to co-venturers)