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What is a Memorandum Joint venture account?

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Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2014/09/04
FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

A joint venture company is a partnership limited to a particular venture, does not make use of a firm’s name, all the parties agreeing to contributing capital towards the venture and to share the profit or losses.

 

Joint ventures accounts can be handled in two ways namely:

 

To treat the joint venture as a separate set of books where the transactions are recorded like as if it is a partnership 

OR

No separate set of books is opened to record the transaction. Each party to record his own transactions in his own books

Khaled Mohee Eldeen Abbas Mahmoud
by Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed

Each co-venture records his own transactions only, which is known as memorandum joint venture method.

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