Question

Joint Venture Account is Nominal Account.

• A. True
• B. False

Answer 1

The correct option is A True

A joint venture is an arrangement in which two or more parties agree to pool their resources for the purpose of a specific task or transaction. In a joint venture, each of the members is responsible for profits, losses and costs associated with it. It is represented as a nominal account in the name of Joint Venture. It does not disclose the profit or loss on Joint Venture.

Each co-venturer debits the account with the amounts paid by him, and credits the account when he receives amounts.