What is a Memorandum Joint venture account?

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

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