DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : Y.Yella Reddy
Designation : HCCP
Branch : DCCP
Institute : 026,S.G.Govt.Polytechnic,Adilabad
Year/Semester : IV Semester
Subject : Accountancy-III
Subject Code : CCP-402
Topic : Joint Venture
Duration : 50 Min.
Sub Topic : Differences between Joint Venture
and Consignment
Teaching Aids : PPT, Animation

CCP-402.18 1
Objectives

On completion of this period you would be

able to know

 Differences between Joint Venture and

Consignment.

2
CCP-402.18
Recap
 In the last period , we learnt about the Difference
between Joint Venture and partnership.
 Name
 Parties/partners
 Continuity
 Liability
 Location
 Minor
 No. of persons
 Applicability of act
CCP-402.17 3
Differences between Joint Venture and
Consignment
Basis of Joint Venture Consignment
difference
1. Relationship Relationship of co- The relationship
venturers is like between consignor
Partnership and consignee is
principal and agent.
2. Term / Period It is confined only It is not confined to
to a particular any particular term
venture or term. or period.
3. Accounting Accounts are Accounts are
methods prepared by prepared by single
Different methods. method.
4
CCP-402.18
Differences between Joint Venture and
Consignment contd.

4. Ownership All the Co- The consignor is

Venturers are the the owner of
Joint owners. consignment.

5. Profit or Loss Profit or loss will be Profit or loss is

shared by all the borne by
Venturers. consignor.
6. Management The co-venturers The consignee has
enjoy full powers to no powers and he
manage the has to obey the
business. instructions of his
principal.
CCP-402.18 5
Differences between Joint Venture and
Consignment contd.

7. Finance Required amount Amount is

is contributed by invested by the
the Venturers. consignor.

8. Risk Risk is shared Risk is borne by

between consignor alone
Venturers.

9. Scope Covers many Limited to trade

activities including only.
trade.

CCP-402.18 6
Differences between Joint Venture and
Consignment contd.

10. Account sale No need to Account sale is

prepare prepared
Account sale
11. Valuation of No need of If goods are
unsold stock valuation of unsold with
unsold stock consignee,
as the Joint valuation of stock
venture is is made.
closed.

CCP-402.18 7
Summary
 Differences between Joint Venture and
Consignment.
 Relationship
 Term/period
 Accounting methods
 Ownership
 Profit or loss
 Management and Finance
 Risk and Scope
 Account sales

CCP-402.18 8
 Quiz

1) In Joint Venture who is the owner of the

business?
a. First co-venturer
b. Second co-venturer
c. All co-venturers jointly
d. None

CCP-402.18 9
 Quiz contd.

2) In Joint Venture risk is borne by

a. First co-venturer
b. All co-venturers collectively
c. Both
d. None

CCP-402.18 10
Frequently Asked Questions

3) What is the difference between Joint Venture

and Consignment ?

CCP-402.18 11