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  • Atricle Dump - Joint Venture Principles And Practices

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    e set of accounting books is provided, in the same way as a partnership. In this case no particular accounting problem exists. All transactions are recorded according to the double entry system and an income statement a
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    In contrast, they may need to combine their abilities for only a limited period, or only for carrying out a specific project. Because of the relatively short duration of such an association, a permanent arrangement such as a partnership would be unsuitable and unnecessary. In such cases, parties often enter into a more informal type of association known as a joint venture. A joint venture is an association similar to a partnership, but which is entered into for a limited and specific object. These days they are frequently used in large construction projects.

    As a result of this latter development, large companies have become involved in 'long-term' joint ventures and suitable accounting accountability of their interests in such ventures has become essential.

    There are two possible methods of accounting that can be used for such joint ventures: (1) a separate set of accounting books is provided, in the same way as a partnership. In this case no particular accounting problem exists. All transactions are recorded according to the double entry system and an income statement an

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    as a partnership would be unsuitable and unnecessary. In such cases, parties often enter into a more informal type of association known as a joint venture. A joint venture is an association similar to a partnership, but which is entered into for a limited and specific object. These days they are frequently used in large construction projects.

    As a result of this latter development, large companies have become involved in 'long-term' joint ventures and suitable accounting accountability of their interests in such ventures has become essential.

    There are two possible methods of accounting that can be used for such joint ventures: (1) a separate set of accounting books is provided, in the same way as a partnership. In this case no particular accounting problem exists. All transactions are recorded according to the double entry system and an income statement a

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    which is entered into for a limited and specific object. These days they are frequently used in large construction projects.

    As a result of this latter development, large companies have become involved in 'long-term' joint ventures and suitable accounting accountability of their interests in such ventures has become essential.

    There are two possible methods of accounting that can be used for such joint ventures: (1) a separate set of accounting books is provided, in the same way as a partnership. In this case no particular accounting problem exists. All transactions are recorded according to the double entry system and an income statement a

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    m' joint ventures and suitable accounting accountability of their interests in such ventures has become essential.

    There are two possible methods of accounting that can be used for such joint ventures: (1) a separate set of accounting books is provided, in the same way as a partnership. In this case no particular accounting problem exists. All transactions are recorded according to the double entry system and an income statement a

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    e set of accounting books is provided, in the same way as a partnership. In this case no particular accounting problem exists. All transactions are recorded according to the double entry system and an income statement and balance sheet are prepared in the usual manner, (2) a separate set of accounting books is not provided. Because of the relatively short duration of many types of joint venture, separate accounting books are often not provided.

    In a joint venture each party, by mutual agreement, assumes responsibility for certain specific tasks in order that the objectives of the joint venture may be achieved. For example, one party may purchase certain goods on behalf of the joint venture and send them to another party who is responsible for sales. At specific times (e.g. when the venture has been concluded or at other specific times) each entrepreneur must provide the other parties with a complete financial accounting report of all his transactions on behalf of the joint venture.

    In order to do this, each entrepreneur records the transactions that he concludes on behalf

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