Question

When unsold stock is taken away by a Co-venturer, the _______ is debited.

• A. Stock With Joint Venture A/c
• B. Co-venturer's Capital A/c
• C. Joint Bank A/c
• D. None

Answer 1

The correct option is B Co-venturer's Capital A/c

This is the capital account of the venturer relating to venture. This account is credited by the capital contributed by the venturers, goods supplied by them from their own stock, expenses made personally by them etc. whereas this account is debited for any withdraw­als or any asset taken from the venture.

The profit or loss so made on venture is transferred to this account in profit sharing ratio and this account is closed by cash payment from joint bank and vice versa in the opposite case.