Accounting Methods in Joint Venture Transaction (3 Methods)
So, A will prepare a Joint Venture Account and B's Capital Account in his books while B will also prepare a Joint Venture Account and A's Capital Account in his book. (1) Joint Venture Account: It should be prepared like the previous one which reveals the result of the business, that is, profit or loss which ultimately be transferred to Venturers Capital.
(A) Where Separate Set of Books Is KeptThis method is particularly followed where there are large transactions, that is, the venture is a large one and is continued for a comparatively l...(B) Where No Separate Set of Books Is KeptThis method is applicable where the joint venture transactions are limited and the venturers reside at two different places. Under this method each...(C) Where Each Co-Venturer Maintains A Record of His Own TransacTions (or Partial Record Method) (or Momorandum Joint Venture Method)Under this method each co-venturer keeps a record of Joint Venture transactions in which he is involved i.e. each venturer records in his own book...
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