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Journal Entry for payment through Joint Bank A/c in Joint Venture Accounting

purchases made & expenses paid from out of joint bank account are debited to:
a)joint bank account
b)co-venture account
c)joint venture account
d)assets account

asked Mar 29, 2015 in Joint Ventures by pooja j (233 points) 751 views

1 Answer

0 votes
When Separate Set of Books is maintained for the Joint Venture, then normal three accounts are made, namely Joint Bank A/c, Joint Venture A/c and all Co-venturer's A/cs.  When any payment is made through Joint Bank A/c for any expenses, then journal entry passed is:

Joint Venture A/c   Dr.                                                                                                                                                                                                                                                                         To Joint Bank A/c

Hence option option (c) is most appropriate.
answered Mar 29, 2015 by jbsclasses (3,971 points)