Question

What is the difference between joint venture account and consignment account?

Answer 1

Difference between Joint Venture and Consignment

S.No.	Basis of Difference	Joint Venture	Consignment
1.	Relation between two parties	Co-ventures are partners in joint venture.	Relationship in consignment is between principal and agent.
2.	Ownership	All co-ventures are owner.	The consignor alone is the owner.
3.	Capital contribution	All co-ventures contribute -to the capital.	The consignor alone contribute the capital.
4.	Period	It is temporary partnership. It automatically terminates at the completion of the object.	Its period is longer than joint venture.
5.	Sharing Profit & Loss	Profit is distributed among all co-ventures.	Profit belongs to the only.
6.	Methods of keeping Accounts	There are four methods of keeping accounts.	There is only one method of keeping accounts.
7.	Act	Here mutual agreement rule is applied.	While agency related rules are applied.