2017 · Q65
When goods are purchased for the Joint Venture, the amount is debited to
General Accounting Principles, Auditing and InsuranceFinal accounts
- APurchase Account
- BJoint Venture Account
- CVenturer's Capital Account
- DProfit and Loss Account
Explanation
Under the separate-books method of joint venture accounting, all joint venture transactions pass through the Joint Venture Account, so goods purchased for the venture are debited to the Joint Venture Account. A general Purchases Account is used only when no separate JV records are kept. Hence B.