Question

find the truth value. 1) if a joint venture is a temporary partnership,then discount on purchase is created to the supplier. 2) every accountant is free to apply his own rules if and only if machinery is an asset.​

Answer 1

Answers to the given questions

Explanation:

1) False. A joint venture is a legalized agreement between 2 or more parties/organizations in which all the parties pool their resources and technology to achieve a common goal.

It is also referred to as a Temporary partnership. All the transactions of the joint venture are carried out through a joint account(similar to a normal bank account) and at the end of the joint venture agreement,the balance in the joint venture account is distributed among the parties as per their agreement.

The discount received on purchase of goods is credited to the joint venture account if the separate books of accounts are prepared.

2)False. An Accountant cannot apply his own rules even if the machine is an asset. An Accountant has to follow the rules prescribed by the main accounting body of that country(Eg. US GAAPs) or rules prescribed by the IFRS(European).

Answer 2

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1) False. A joint venture is a legalized agreement between 2 or more parties/organizations in which all the parties pool their resources and technology to achieve a common goal.

It is also referred to as a Temporary partnership. All the transactions of the joint venture are carried out through a joint account(similar to a normal bank account) and at the end of the joint venture agreement,the balance in the joint venture account is distributed among the parties as per their agreement.

The discount received on purchase of goods is credited to the joint venture account if the separate books of accounts are prepared.

2)False. An Accountant cannot apply his own rules even if the machine is an asset. An Accountant has to follow the rules prescribed by the main accounting body of that country(Eg. US GAAPs) or rules prescribed by the IFRS(European).