MEMORANDUM JOINT VENTURE ACCOUNT

Memorandum joint venture account is prepared exactly on the pattern of a profit and loss account to find out the profit or loss of the venture.But this account does not form part of the double entry system,hence the word memorandum is used,all items appearing on the debit side and credit of all the co-ventures account are written on the debit side and credit side of this account shows the profits or loss of the venture

FEATURES OF JOINT VENTURE

(1) It is a temporary partnership and comes to an end on completion of the particular venture.
(2) It is a particular partnership as it is formed for a particular venture
(3) It is a partnership without the use of the firm name.
(4) Ii is formed mainly to earn profit and to share it among all ventures

JOINT VENTURE

Joint venture is a venture which is undertaken by two or more than two person for doing certain business and sharing profits of this business in an agreed proportion.It is a particular partnership constituted temporary,without a firm name for carrying on a specific business.When the business is over the joint venture comes to an end.The parties in joint venture are known as co-ventures.Joint venture may be for purchase or sale of goods,construction and contract business etc

MANUFACTURING ACCOUNT

An account which contains full information about the cost of goods manufactured is termed as manufacturing account.A concern which converts the raw materials into finished goods is required to find out the cost of goods manufactured besides its gross and net profits.Such a concern first prepares manufacturing account and then prepares the trading and profit&loss account.Thus the main objects of manufacturing account are
(1) To ascertain the cost of finished goods produced
(2) To show the constituent items thereof

PREPARATYION OF TRADING ACCOUNT

The trading account is prepared debiting the account with the opening stock first,followed by purchases less returns(ie:- return outwards) and direct expenses.(expenses directly connected with such purchases.)and crediting the same with sales less returns.(return inwards) followed by closing stock.The difference between the totals of the both of thje yrading account gives gross profit or gross loss. In case the credit side total of it is more than the debit side total,the difference is the 'gross profit'.On the other hand if debit side total of it is greater than that of the credit side, the difference is the 'gross loss'.