3rd method................Same Set of Books - Own Records only

 

Memorandum Joint Venture A/c

 

Particulars

Adjustment

Amount

Particulars

Adjustment

Amount

To A a/c 

(all expenses of A 

and what A gets from the firm)

 

*

By A a/c 

(all income of A)

 

*

To B a/c 

(all expenses of B 

and what B gets from the firm)

 

*

By B a/c 

(all income of B)

 

*

To Profit On Venture (ratio)     A                                             B 

 

*

To Loss On Venture (ratio)     A                                                B 

 

*

 

 

   ##

 

 

    ##

 

 

In the books of A

 

Joint Venture with B a/c

 

Particulars

Adjustment

Amount

Particulars

Adjustment

Amount

To Cash/Bank/Bills Payable a/c 

(advance paid by A)

 

*

By Cash/Bank/Bills Receivable a/c 

(advance received by A)

 

*

To Bank a/c 

(all expenses of A and what A gets from the firm)

 

*

By Bank a/c

 (all income of A)

 

*

To Profit and Loss a/c (profit of A)

 

*

To Purchase 

(goods taken by A)

 

*

To Cash/Bank/Bills Payable a/c

(final remittance paid by A)

 

  *

By Profit/Loss a/c 

(loss by A)

 

    *

 

 

*

To Cash/Bank/Bills Receivable a/c

(final remittance received by A)

 

*

 

 

   ##

 

 

    ##

 

In the books of B

 

Joint Venture with A a/c

 

Particulars

Adjustment

Amount

Particulars

Adjustment

Amount

To Cash/Bank/Bills Payable a/c 

(advance paid by B)

 

*

By Cash/Bank/Bills Receivable a/c 

(advance received by B)

 

*

To Bank a/c 

(all expenses of B and what B gets from the firm)

 

*

By Bank a/c 

all income of B)

 

*

To Profit and Loss a/c (profit of B)

 

*

To Purchase (goods taken by B)

 

*

To Cash/Bank/Bills Payable a/c 

(final remittance)

 

  *

By Profit/Loss a/c 

(loss by B)

 

*

 

 

 

To Cash/Bank/Bills Receivable a/c 

(final remittance received)

 

*

 

 

   ##

 

 

    ##
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