Question

Where separate set of books are maintained, the ledger accounts required are ____________.

• A. Memorandum Joint Venture and Joint venture Account with the other party
• B. Joint Venture Account and the Personal Account of the other party
• C. Joint Bank Account, Co-Venture's Accounts and Joint Venture Account
• D. Joint Bank Account and Joint Venture Account with the other party

Answer 1

Answer: (C)

Joint Bank Account, Co-Venture's Accounts and Joint Venture Account

A Joint Venture is a contract between two or more persons who agree to do a small piece of commercial undertaking jointly.

Separate set of books is a method which particularly followed where there are large transactions, that is, the venture is a large one and is continued for a comparatively long period. The following three accounts are prepared under this method:

(i) Joint Venture Account

(ii) Joint Bank Account

(iii) Co-venturer's Account