Question

Which of the following accounts does not follow double entry system of book keeping?

• A. Joint Venture A/c
• B. Memorandum Joint Venture A/c
• C. Joint Bank A/c
• D. Other Co-venturer's A/c

Answer 1

The correct option is B Memorandum Joint Venture A/c

Out of the given options, the memorandum joint venture account does not follow the double entry system of book keeping as it is essentially not an account but a statement, which is prepared to ascertain the profit or loss of the joint venture. The memorandum account is not prepared using the entries passed in the journal in a double entry book keeping system. It is prepared by taking information from the memoranda, which is a statement of transactions sent by one co-venturer to another to help him take into account all the transactions relating to the joint venture and arrive at the correct profit or loss.