Question

For payment of joint venture expenses in case of memorandum joint venture method:

• A. Goods A/c is debited and Cash A/c is credited.
• B. Memorandum Joint Venture A/c is debited and Cash A/c is credited.
• C. Joint Venture A/c is debited and Cash A/c is credited.
• D. Another Co-venturer's A/c and Cash A/c is credited

Answer 1

The correct option is D Another Co-venturer's A/c and Cash A/c is credited

In this case, each co-venturer records only his own transactions.

For this On payment of expenses, Joint Venture with

Co-venturer's A/c, Dr. XXX.

To Cash XXX