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Realisation of Assets and Liabilities - Comprehensive

Goods purchas...

Question

Goods purchased for joint ventures are debited to _____________.

A

Purchase A/c

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B

Trading A/c

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C

Joint venture A/c

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D

Profit and loss A/c

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Solution

The correct option is D Joint venture A/c
Goods bought on joint venture as well as expenses incurred in connection with the business are debited to the joint venture account and credited to the seller's account or the joint bank account

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