Question

when the capital contributed by co venturers is recorded in
1. joint bank accout
2.joint venture account

give reasons for your answers.

(note by using 1st mentor of preparing joint venture Accounting .i.e maintaining separate books of account of each co venturer)​

Answer 1

heyaa,,,

___________________________

when the capital contributed by co venturers is recorded in

1. joint bank accout

2.joint venture account

give reasons for your answers.

(note by using 1st mentor of preparing joint venture Accounting .i.e maintaining separate books of account of each co venturer)

sol.(1) Joint Bank Account

The co-venturers open a separate bank account for the venture transactions. They make initial contributions to this account. The bank account is normally operated jointly. Expenses are met from this Joint Bank Account. Sales or collections from transactions are deposited into this account.

However, if any co-venturers make direct payments and direct collections; in such a case their Personal Accounts will be credited/ debited for the transactions done. On completion of the venture, the Joint Bank Account is closed by paying the balance to co-ventures.

___________________________

hope it helps...

Answer 2

Answer:

$\huge\underline\bold\red{AnsWeR}$