Question

For sending cash to another co-venture (Y) in case of memorandum joint venture method:

• A. No entry is passed
• B. Memorandum Joint Venture A/c is debited and Cash A/c is credited
• C. Joint Venture with Y A/c is debited and Cash A/c is credited
• D. Joint venture with Y A/c is debited and Memorandum Joint Venture A/c is credited

Answer 1

Answer: (C)

Joint Venture with Y A/c is debited and Cash A/c is credited

As Y is receiving cash , his account will be debited and and cash account will be credited as per golden rules of Accounting.