Joint Venture Accounting Video Lecture - CA Foundation

welcome to this discussion on joint
venture by the end of this discussion
you will understand what a joint venture
is and the basic accounting principles
behind accounting for joint ventures so
happy learning
the our discussion would be structured
as below
first we will understand what is a joint
venture a joint venture is basically
when two or more people come together to
do a business if that is the definition
of joint venture then what is the
distinction between a joint venture and
a partnership next having understood
what a joint venture is and the
distinction between a joint venture and
partnership we will then you want to
accounting for joint ventures accounting
for joint ventures usually is of two
types one where we keep a separate set
of books for the joint venture for the
joint venture and where no separate set
of books is kept for the joint venture
so each partner you don't call them
partners we actually call them
coinsurance each co-venture keeps
accounts relating to the joint venture
in his own books so where there is a
separate set of books and where there is
no separate set of books for the joint
venture when there is no separate set of
books as each co-venture is keeping the
records for the joint venture in his own
books there are two types one may be one
where he prepares a Memorandum joint
venture and one where no joint
Memorandum joint venture is prepared
when he does propel a joint memorandum
join
Jerrica he records only his transactions
only on transactions that means if the
co-venture spends money he records it
but if his other co-venture spends money
he makes no liquor on the other hand
there is another system of accounting
for joint venture by which each
co-venture records all transactions
whether he has spent or the other go
venture has spent on received let us
begin