Question

When purchases are made for the joint venture out of joint bank account, the ........ account is debited.

• A. Joint Venture A/c
• B. Expenses A/c
• C. Joint Bank A/c
• D. None

Answer 1

The correct option is A Joint Venture A/c

When purchases are made for the joint venture out of joint bank account, the joint venture account is debited as it is an expenditure incurred by the joint venture through its bank account. So, the purchases will be directly charged to the joint venture account.