can u pls tel the JE ?

financial year is jannuary 2012 to Dec 2012

A raised a loan from Bank for Rs 50,000 at 18% p.a. which is repayable with interest on 1.9.2012

what will be the journal entry for the above question:--

a) if seperate sets of books are maintained

2) If memorandum joint venture is maintained.
asked May 2, 2014 in Joint Ventures by alishaad (4 points) 101 views
edited May 2, 2014 by alishaad

1 Answer

0 votes
The journal entries are given on the assumption that he raised the loan personally but to be used by joint venture.

Separte Set of Books:

On receipt of amount from A             Joint Bank A/c           Dr.  50000

                                                                      To A's Capital A/c                       50000

On repayment of loan with interest:  A's Capital A/c          Dr.  50000

                                                          Joint Venture A/c          (with interest)

                                                                     To JV Bank A/c

Memorandum Joint Venture Method: (in Books of A): JE for raising loan.

                                                         Bank A/c                     Dr.  50000

                                                                    To Bank Loan A/c                           50000

In this case next journal entry will be passed only when he spends money on behalf of Joint Venture.  Entry for that will be :                                          Joint Venture with ....A/c Dr.
                                                                   To Bank A/c

For repayment of loan entry will be: Bank Loan A/c                     Dr.

                                                          Joint Venture with ......A/c    Dr. (with interest part)

                                                                    To Bank A/c
answered May 2, 2014 by jbsclasses (3,971 points)
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