Joint business venture. I buy something for £1350 and pay out of my pocket.We have £450 in a joint kitty, he says take the kitty and put a note in ledger that you are owed £900, I say surely it is £1125 as half the kitty was mine? He says no you`ve paid £1350 had £450 back you are £900 out of pocket.
Then says if we were buying it out of the kitty i would of asked you for £900 to make it up to £1350, this I can see but still feel that it should be £1125 owed to me, it`s battering my brain, who is correct. cheers in advance. John

You need to be fully reimbursed by the joint venture so he’s right, if the joint venture repays you the balance of £900 then you’ve been reimbursed in full.
To further reconcile, your personal funds will have been £1350 out and received. The joint venture will have paid out £1350.

if you both put a further £450 in the kitty then you take the kitty then you should be all square. Effectively your mate owes you £450 to square thye purchase with you and to leave an empty pot.

Your mate is correct

Thanks for reply,So the project is now complete and I have paid £900 in total more he gives me £450 and we are quits?? It is something daft but it is battering my head!!

Welshfarmer if we both put in £450 each plus the kitty and i take all the £1350 then ive paid £1350 to buy plus the extra £450 so now paid £1800?? No??

No.. you would have had £1350 back as reimbursement clearing your original spend so you’ve paid £450. He’s paid £450, and the business has paid £450, which you have both paid half of. Job done, no? Your partner is right, though can see why you’d think otherwise.

Just think of it as any money you put into it equally becomes the companies – if you’d bought with company funds and just both topped it up by £450 each you’d be in the same position.

Can I have a fiver?

I will ask my mate Matt!!

For the sake of simplicity lets assume you only made income of £450, the JV has lost 900 (1350 you spent less 450 JV received), the “return” of your £1350 is made up of 450 cash from JV, 450 (900/2) from your partner for his share of loss and 450 for your share of loss.

bought something jointly?

1350/2
= £675 paid each

kitty = £225 paid each

so he owes you £450 to get 50% ownership of said item.

you’d have 0 left in kitty.

Cheers for all the scenarios , coming round now, you can have half Matt £1.25 is on its way!!

basically, you own 85% of said item, he owns 15%.

Dissolve the join venture coz it’s a pain in the arse similar to equal partnership.

Also sounds highly dubious that your business partner is chucking IOWs into your business bank account! 😆

… put a note in ledger …

😆

I’d also keep an eye out for the 900 quid deposit going into your joint account, if that doens’t happen, you’re getting robbed! Can class it as he’s cashed out £900 from the business, so if you start making a profit, don’t forget that!

Your working with a mate in the nicest possible way be prepared to either say goodbye to the cash or your mate.

seosamh77 – Member
bought something jointly?

1350/2
= £675 paid each

kitty = £225 paid each

so he owes you £450 to get 50% ownership of said item.

you’d have 0 left in kitty.
This
Write down what you have both put in – 1 column each.
What you have both paid out – 1 column each.
At the end of the month make sure your contribution/take is the same. If the business has a cash flow problem (ie you are paying it not your mate you need to know why)

Cheers for replies, it all works fine he will give me his half today just wanted half of the right amount, I agreed then the good lady said are you sure then the seed of doubt was sewn