Question

Which of the following accounts is NOT to be opened in case of separate books for joint venture business are kept?

• A. Joint Venture A/c
• B. Joint Bank A/c
• C. Partner's Capital A/c
• D. Memorandum Joint Venture A/c

Answer 1

Answer: (D)

Memorandum Joint Venture A/c

When separate books for joint venture business are maintained, memorandum joint venture account is not required to be opened. Memorandum joint venture account is a statement which is prepared to take into account all the transactions of all the co-venturers relating to the joint venture to ascertain correct profit or loss of the joint venture. When the books are maintained separately, there is no such requirement.