Joint Bank Account 🍯
Purpose: To keep Joint Venture funds separate from personal funds of partners. It ensures transparency.
Operation:
- Opened in the name of the Venture (e.g., "A & B Joint Venture").
- Operated jointly (Signatures of both A and B required).
- All Capital goes in here.
- All Expenses are paid from here.
- All Sales Proceeds are deposited here.
The Flow of Money 💸
1. Inflow"Capital from A & B. Sales Revenue."
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2. Joint Bank"The Pool of Money."
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3. Outflow"Purchase of Goods. Expenses. Final Payment to A & B."
Closing the Account: At the end, after paying back capital and profit, the balance must be Zero. If there is a balance left, you made a mistake in calculation!
Quiz Time! 🎯
Test Your Knowledge
Question 1 of 5
1. Joint Bank Account is opened in:
💡 Final Wisdom: "Trust is good, but a Joint Bank Account is better. It prevents one partner from running away with the money!" 🏃♂️💰
Next up: Memorandum Joint Venture - The most popular exam topic! 📝