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Distinction between Joint venture and Consignment


Basis of Distinction

Joint Venture


1.  Nature of


The relation between co-venturers is that of co-owners.

The relation between the consignor & the consignee is that of Principal and Agent.

2. Ownership &                                                                             Risk  of Goods

Both these remain with Coventurers.

Both these remain with the consignor.

3.    Account Sales

No Account   Sales is sent by one Co-venturer to another Co-venturer.

An   Account   Sale   is prepared   and submitted by the consignor and not by the consignee.

4. Profit & Loss on transactions.

Profit and losses are shared by the Co-venturers in an agreed ratio.

Profit & losses are shared only by the consignor and not by the consignee.

5.    Subject-Matter of Dealing

Any movable or immovable property may be its subject  matter

Only movable property   may be its subject matter.

6.    No. of Persons

In a venture, there may be two or more persons.

In consignment, there are two persons Consignor and Consignee.

7.    Methods of


There are four methods of recording.

There is only one method of recording.

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