Coupon Accepted Successfully!


Recording in the Books of One Co-venturer Only

Under this method, all joint venture transactions are recorded by one of the venturer along with his own books of accounts. Generally, the following accounts are opened under this method:

  • Joint Venture account to ascertain the profit/loss made on joint venture
  • Personal accounts of other co-venturers to record the joint venture transactions effected by other co-venturers and to ascertain the amount due to/from other co-venturers

For accounting purposes, the venturer who maintains the books of accounts is referred as the venturer recording transactions and the venturers not recording transactions are known as other co-venturers.


Note: When goods are supplied out of own stock by the co-venturer recording transactions, Purchases account should be credited if the supply is made at cost price. Sales account should be credited if the supply is made at selling price.

Journal Entries


Illustration 2


X and Y are partners in a joint venture sharing profits and losses in the proportion of 4/5 and 1/5 respectively. X supplies goods of the value of ₹ 20,000 and incurs expenses amounting to ₹ 1,600. Y supplies goods of the value of ₹ 16,000 and his expenses amount to ₹ 1,200. Y sells goods on behalf of the joint venture and realizes₹ 48,000 and he is entitled to a commission of 5% on sales. Y settles his account by bank draft. Give the journal entries and the relevant ledger accounts in the books of X.

Journal Entries


Test Your Skills Now!
Take a Quiz now
Reviewer Name