Question

When independent books of account are maintained for joint venture business, the expense paid for joint venture is _____________.

• A. Credited to joint bank account
• B. Credited to expenses account
• C. Debited to the partner who paid it.
• D. Credited to joint venture account.

Answer 1

The correct option is A Credited to joint bank account

In this case, each Co-venturer maintains the record independently of the joint venture transactions. Each Co-venturer maintains the full records of their own transactions and that of the other co-venturer. However, if the co-venturers choose to keep the record of their own transactions only then they prepare Memorandum Joint Venture A/c.