Question

Which of the following statements is true in case of Joint Venture?

• A. Co-venturer's contribution of goods is debited in Joint Bank A/c.
• B. Co-venturer's contribution in cash is debited in Venturer's personal account.
• C. Discount on discounting of B/R is debited to Venturer's personal account.
• D. Sale proceed received is credited to Joint Venture Account.

Answer 1

The correct option is D Sale proceed received is credited to Joint Venture Account.

A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses, and costs associated with it.

• When the sales proceeds or collections Joint bank account. Dr. To joint venture account. When the collections received by co- ventures etc, are debited and expenses of joint venture, purchase of goods are credited.