Accounting For Ventures / Joint Venture Accounts

Accounting For Ventures / Joint Venture Accounts

Learning Objectives:

  1. Define and explain the terms consignment, consignor and consignee.

  2. What is the difference between consignment and sale?

  3. Make journal entries in the books of consignor and that of consignee.

  4. Prepare consignment account and consignee’s account in the books of consignor.

Definition and Explanation of Joint Venture:

A joint venture is a temporary partnership of two or more persons engaged in any particular business adventure of enterprise of short or seasonal duration. Click here to read full article.

Difference Between Joint Venture and Consignment:

In joint venture, parties to the agreement are known as co-ventures while in consignment they are termed as consignor and consignee. Click here to read full article.

Advantages and Disadvantages of Joint Venture:

Smart entrepreneurs and business owners know that Joint Ventures are the fastest and most effective way to radically increase sales and profits with virtually no money and no risk, as long as its done correctly. Click here to read full article.

Joint Venture Accounting – Journal Entries:

There are two methods in which joint venture account can be kept These are:

  1. Where no separate books are kept to record joint venture transactions.
  2. Where as separate set of books is kept to record the transactions. Click here to read full article.

Memorandum Joint Venture Account:

The is another method to record the transactions in the books of the various parties. Under this method the joint venture account is prepared on memorandum basis, just to find out the profit or loss but not as a part of financial books. Click here to read full article.

General Questions and Answers About Joint Venture Accounting:

Find the answers of various general questions and answers about joint venture accounting. Click here.

Joint Venture Accounting Exercises and Problems:

Solved problems about joint venture Click here to find the solved problems.

Other Related Accounting Articles:

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