Question

For stock of goods taken over by a Co-venturer in case of separate set of books ______________________.

• A. Goods A/c will be debited and Joint Bank A/c will be credited
• B. Joint Venture A/c will be debited and Joint Bank A/c will be credited
• C. Venture's Capital A/c will be debited and Joint Venture A/c will be credited
• D. Joint Venture A/c will be debited and Venture's Capital A/c will be credited

Answer 1

Answer: (C)

Venture's Capital A/c will be debited and Joint Venture A/c will be credited

Personal accounts of the venturers are maintained to keep a record of their contributions of cash, goods. Expenditure directly paid and payments directly received by co-venturers are also recorded in this account. The profit or loss so made on the venture is transferred to this account in the agreed profit sharing ratio. This account is also closed on completion of the venture.