Question

Kiran and Roshni have entered in a joint venture and keep separate accounts of joint venture. Kiran sold some goods on credit. Some amount of this sale become bad. Which account will be debited for this bad-debt?

• A. Kiran A/c
• B. Cash A/c
• C. Joint Venture A/c
• D. Debtor's A/c

Answer 1

Answer: (C)

Joint Venture A/c

This account represents the results of the business, that is, profit or loss. It is like a Trading/Profit & Loss Account of a trading concern. This account is debited by the cost of goods, expenses; goods supplied by the venturers etc. and are credited by sale proceeds, unsold stock, stock taken by venturers etc.