Recording of transactions in Memorandum joint venture

In memorandum joint venture a/c method, each co-venture records -
a)all the jont venture transactions
b)common joint venture transactions
c)only those which are affected by him only
d)none of these

asked Mar 4, 2015 in Joint Ventures by pooja j (233 points) 278 views

1 Answer

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When accounts are maintained by each co-venturerr in his books, he may follow Memorandum Method.  In this method each co-venturer records only the transactions affected by him only.  At the end when he receives records maintained by others of their transactions on behalf of joint ventures, he compiles Memorandum Joint Venture A/c to find out profit or loss made on the joint venture.  Hence option (c) is most appropriate.
answered Mar 5, 2015 by jbsclasses (3,971 points)