JOINT VENTURE ACCOUNTS

Financial Accounting SSS2 Third Term

WEEK – NINE

JOINT VENTURE ACCOUNTS

CONTENT

TOPIC: JOINT VENTURE ACCOUNTS

1. Definition of Joint Venture.
2. Accounting entries required for joint ventures.
3. Practical illustration of joint ventures.

Definition

Joint venture is a business relationship of two or more persons or venturers, for the purpose of carrying on a particular transaction with the aim of profit making.  The principle of Joint Venture borrows from partnership but the difference is that the Venture ceases operation immediate the purpose of its establishment is achieved.

Joint Venture is not a going concern.

Major account prepared are:

i.   Individual Joint Ventures Account: basically, the individual in joint ventures prepares joint ventures account affecting him in his books.

ii.  Memorandum Joint Venture…