MEANING

The Joint venture may be defined as temporary partnership between two or more persons without the use of firm’s name for a specific purpose and limited time period. In other words, two or more persons agree to undertake a particular venture and to share the profits and losses thereof in an agreed ratio. The relationship of co-venturers is governed by the partnership law of land.

Joint venture normally enters into either

• To complete a particular job
• For a pre-contracted time limit period after which they are automatically terminated.

FEATURES OF JOINT VENTURE

The following are the features of joint ventures:

TEMPORARY PARTNERSHIP: It is a kind of temporary partnership and comes to an end after a particular time period or after the completion of particular venture.

PARTICULAR PARTNERSHIP: It is formed for a particular job hence it is called as a particular partnership.

NO USE OF FIRM NAME: It is the contract between the two or more firms to carry on the business for limited period of for particular purpose. So it carries no firm name.

MEMBERS OF JOINT VENTURE: The members of this form of business is known as Co-venturers.

OBJECTIVE: The main objective of forming this is to earn profit and to distribute the profit between the co-venturers. Also the loss is distributed among them in the equal ration otherwise in agreed ratio.

COMBINATION OF CAPITAL AND SKILL: In case of Joint venture, the combination of capital and skill is possible. As one may provide the capital and another may provide the technical know-how. Thus these combinations of various factors of production makes the venture highly profitable.

DETERMINATION OF PROFIT: In case of the joint venture the profit is determined on the basis of individual venture and not on the periodical basis.

TIME PERIOD: Joint Venture generally comes into existence for short term. It is either formed for a particular purpose or for limited time period.

Also Study	Also Study	Also Study	Also Study
Accounting	Non profit organisation	Depreciation	Liquidity ratios
Nature of Accounting	Receipts and Payments Account	Depreciation Accounting	Acid Test Ratio
Benefits of Accounting	Scope of accounting	Hire Purchase Accounting	Cash Ratio
Difference between cost accounting and financial accounting	Financial accounting, cost accounting and management accounting	Difference between hire purchase and instalment system	Financial ratio analysis
Difference between transaction and event	Transactions	Users of Accounting	Ratio analysis
Limitation of Accounting	Capital Expenditure	Instalment System	Difference between consignment and sale
Book Keeping	Revenue Expenditure	Reserves Accounting	Abnormal loss vs normal loss in consignment
Accountancy	Difference between capital and revenue expenditure	Provisions	Treatment of loss on consignment
Accounting as science or an art	Accounting Equation	Single entry system	Accounting treatment of consignment
Book Keeping vs accounting	Deferred Revenue Expenditure	Difference between statement of affairs and balance sheet	Joint venture vs consignment
Book keeping vs accountancy	Capital receipt	IFRS	Departmental Accounting
Accounting vs accountancy	Revenue receipt	Balance Sheet	Methods of departmental accounting
Basis of Accounting	Difference between capital and revenue receipt	Profit and loss Account	Allocation of expenses in departmental accounting
Branches of accounting	Difference between accounting concepts and conventions	Trading Account	Inter-departmental transfers
Cash and mercantile system of accounting	Accounting Standards	Voyage Account	Different types of branches
Accounting Principles	Objectives of Accounting	Accounting for Incomplete Voyage	Departmental vs Branch accounting
Golden ru les of accounting	Process of Accounting	Joint venture	Methods of branch accounting
Double entry system of book keeping	Scope of Accounting	Joint Venture Vs Partnership	Incorporation of branch trial balance
Double entry vs Single entry system	Accounting Concepts vs Accounting conventions	Methods of recording transactions in Joint Venture	Garner VS Murray Rule
History of Accounting	Difference between provisions and reserves	Consignment