Question

Which account is credited on supply of goods out of own stock for joint venture business ?

• A. Joint Venture A/c is credited
• B. Goods sent on Joint Venture A/c is credited
• C. Other Co-venturer's A/c credited
• D. None of these

Answer 1

Answer: (B)

Goods sent on Joint Venture A/c is credited

On supply of goods out of own stock for joint venture business, goods sent on joint venture account is credited as the balance of own stock reduces to meet the needs of the joint venture business. Such stock primarily does not belong to the joint venture business, hence the goods sent on joint venture account is credited.