entry for cash sale in memorandum joint venture system

For sale of goods for cash in case of memorandum joint venture a/c method-
a)cash a/c is debited & goods a/c is credited.
b)cash a/c is debited & another co-ventures a/c is credited
c)cash a/c is debited & another joint venture a/c is credited.
d)another co-ventures a/c is debited & memorandum joint venture a/c is credited

asked Mar 5, 2015 in Joint Ventures by pooja j (233 points) 462 views

1 Answer

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For example coventurer A (he is in joint venture with B) sells goods for cash and he maintains record of only those transactions which he affects on behalf of joint venture  (in Memorandum JV method this proceddure is followed).  Journal entry in the books of A will be:

Cash A/c        Dr.    

   Joint Venture with B A/c

answered Mar 6, 2015 by jbsclasses (3,971 points)