DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH

Name : Y.Yella Reddy

Designation : HCCP
Branch : DCCP
Institute : 026,S.G.Govt.Polytechnic,Adilabad
Year/Semester : IV Semester
Subject : Accountancy-III
Subject Code : CCP-402
Topic : Joint Venture
Duration : 50 Min.
Sub Topic : Maintaining accounts in a Separate
set of books
Teaching Aids : PPT, Animation

CCP402.27 1
 Objectives

On Completion of this period ,you would be

able to :

Solve problems on Joint Venture under different

method

CCP402.27 2
Recap:

On completion of this period you would be

able to know

Problems on Separate set of books

CCP402.27 3
 Illustration 1

 Ajay and Abhay entered into a Joint Venture to

undertake and execute project works in different
Engineering colleges.
 They agreed to share Profit and loss equally.
They opened a joint bank account depositing
Rs.50,000 each.

CCP402.27 4
Illustration 1 Contd.

 They undertook 30 projects works each project at

Rs.5,000 and executed the same and the
proceeds received after the execution.
 The following expenses incurred out of Joint Bank
A/c. Materials Rs.5,000, Wages Rs.2, 000 and
other expenses Rs.3, 000.
 Prepare the necessary ledger accounts to show
the profit and loss and close the books.

CCP402.27 5
Solution

Dr Joint Venture Account Cr

Rs Rs
To Jt Bank a/c By Jt.Bank 1,50,000
a/c
Materials 5,000 (30*5000)
Wages a/c 2,000
Other charges 3,000
“ Ajay’ s cap 70,000
a/c
“ Abhay’s cap 70,000
a/c
1,50,000 1,50,000

CCP402.27 6
Dr Joint Bank Account Cr
Rs Rs
To Ajay cap 50,000 By J.V. a/c
a/c
“ Abhay cap 50,000 materials 5,000
a/c
“ J.V. a/c 1,50,000 wages 2,000
other charges 3,000
By Ajay’s cap a/c 1,20,000

“ Abhay 1,20,000
cap a/c
2,50,000 2,50,000

CCP402.27 7
Dr Ajay’s Capital Account Cr
Rs Rs

To Jt.Bank a/c 1,20,000 By Jt.Bank 50,000

“ J.V. a/c

70,000
(profit)

1,20,000
1,20,000

CCP402.27 8
Dr Abhay’s capital Account Cr

Rs Rs

To Jt.Bank 1,20,000 By Jt.Bank 50,000

a/c
“ J.V. a/c

(profit) 70,000
1,20,000 1,20,000

CCP402.27 9
 Illustration 2

 A,B and C entered into a Joint Venture and agreed

to divide the profits in the ratio of 6:3:1.
 They purchased by auction several new machines
for Rs. 50,000.
 A contributed Rs.30,000, B Rs. 20,000 and C Rs.
10,000 for carrying on the transactions relating to
the venture.

CCP402.27 10
 Illustration 2 contd.

 A joint Bank Account was opened.

 The ventures sold all the machines for Rs. 1,25,000.
 A spent Rs. 2,450 and B and C spent Rs. 1,250
each in connection with the venture.
 Show the joint venture account and other ledger
accounts in separate books of Joint Venture .

CCP402.27 11
Solution

Dr Joint Venture Account Cr

Rs Rs
To Joint Bank 50,000 By Joint Bank 1,25,000
a/c a/c(sales)
“ A’s a/c
2,450
“ B’s a/c 1,250
“ C ‘s a/c 1,250
“ profit
“ A’s a/c 42,030
“ B’s a/c 21,015
“ C ‘s a/c 7,005
1,25,000 1,25,000

CCP402.27 12
 Dr Joint Bank Account Cr

Rs Rs

To A’s a/c 30, 000 By J.V. a/c 50,000

“ B’s a/c 20,000 “ A’s a/c 74,480

“ C’s a/c 10,000 “ B’s a/c 42,265

“ J.V. a/c 1,25,000 “ C’s a/c 18,255

1,85,000 1,85,000

CCP402.27 13
Dr A’s Account Cr

To Jt bank’s Rs Rs
a/c 74,480 By Jt.Bank 30,000
a/c

“ J.V. a/c 2,450

“J.V. a/c 42,030
(profit)

74,480 74,480

CCP402.27 14
Dr B’s Account Cr
Rs Rs
To Jt Bank a/c 42,265 By Jt. Bank a/c 20,000
“ J. V. a/c 1,250
“ J.V.a/c 21,015
(profit)
42,265 42,265

CCP402.27 15
Dr C’s Account Cr

Rs Rs
To Jt.bank a/c 18,255 By Jt.Bank a/c 10,000
“ J.V.a/c 1,250
“ J.V.a/c 7,000
18,255 18,255

CCP402.27 16
Assignment
A, B and C enter into a Joint Venture to divide profits
equally. They bought goods from D for Rs.1,25,000 and
from A for Rs.25,000. A contributed Rs.30,000, B
Rs.40,000 and C Rs.90,000 which were banked in Joint
Account. They settled their account with D by cheque
and paid for carriage and other expenses for Rs.7,500.
They sold goods for cash Rs.65,000 and on credit to E
for Rs.1,40,000 who accepted a draft for the amount.
They acceptance was cashed and realised Rs.1,37,000.
A was allowed 5% commission on sales. Pass
necessary Journal Entries and prepare Ledger Accounts
assuming that the final settlement was made by
cheques.
CCP402.27 17