Question

Unsold stock of Joint Venture taken over by co-venturer is credited to ____.

विकल्प

• Co-venturer’s account

• Joint venture account

• Joint bank account

• Stock account

Answer 1

Unsold stock of Joint Venture taken over by co-venturer is credited to Joint Venture Account.

Explanation:  

Joint Venture Account is nominal in nature; hence, all expenses and losses are debited, while all incomes and gains are credited. The difference between the expenses and incomes ascertains the profit earned (or loss incurred) by the joint venture. Items such as expenses incurred and goods purchased or supplied by any co-venturer are debited. On the contrary, items such as sales proceeds and goods taken over by the co-venturers are credited. Therefore, unsold stock taken over by co-venturer is credited to Joint Venture Account.

Hence, the correct answer is option (b).