Question

In Memorandum Joint Venture A/c, each Co-venturer records ________________.

• A. All the joint venture transactions
• B. Common joint venture transactions
• C. Only those transactions which are affected by him
• D. None of these

Answer 1

Answer: (C)

Only those transactions which are affected by him

When the co-venturers choose to keep the record of their own transactions only, then they prepare the Memorandum Joint Venture A/c. In this case, each co-venturer records only his own transactions.

For this purpose, each of them opens a ‘Joint Venture with Co-venturer’s A/c’. Also, each of them debits all the expenses, incomes, profits and losses from the joint venture to this account