Question

Expenses of Joint Venture business are debited to ______.

Options

• Joint Bank A/c

•  Joint Venture A/c

• Co-Venturers’ A/c

• Debentures A/c

Answer 1

Expenses of Joint Venture business are debited to Joint Venture Account.

Explanation:

Joint Venture Account is prepared to ascertain the profit or loss of the joint venture. All the expenses of the joint venture (such as purchase of goods, carriage, freight, etc) are debited to this account while all the incomes and gains (such as sale proceeds, unsold goods taken by co-venturer) are credited to this account.

Hence, the correct answer is option (b).