Accounting For Joint Ventures

Difference Between Joint Venture and Consignment: Learning Objectives: What is the difference between joint ventures and consignment? Parties: In joint venture, parties to the agreement are known as co-venturers while in consignment they are termed as consignor and consignee. Compensation: Co-venturers are the partners

Joint Venture Memorandum Account – An Alternative Method: Learning Objectives: What is a memorandum joint venture account? Prepare a 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

Joint Venture Journal Entries: Learning Objectives: What is accounting treatment of joint ventures? Prepare journal entries in the books of parties doing joint venture business. There are two methods in which joint venture accounts can be kept These are: Where no separate books are

Advantages and Disadvantages of Joint Venture Learning Objectives: What are the advantages and disadvantages of joint ventures? 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

Joint Venture Accounting Questions and Answers: Learning Objectives: Answers of some important joint venture questions. Theoretical Questions: Define a “joint venture”. What are the different methods of recording transactions relating to joint venture? Differentiate between “joint venture” and “consignment”. What is memorandum joint venture