CA Foundation Exam > CA Foundation Questions > For purchase of plant from Joint Bank Account...
Start Learning for Free
For purchase of plant from Joint Bank Account, in case separate sets of books are maintained, the correct journal entry will be:
- a)Plant A/c will be debited and Joint Bank A/c will be credited
- b)Joint Venture A/c will be debited and Joint Bank A/c will be credited
- c)Plant A/c will be debited and Venturers Capital A/c will be credited
- d)Joint Venture A/c will be debited and Plant A/c will be credited
Correct answer is option 'B'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
For purchase of plant from Joint Bank Account, in case separate sets o...
Journal Entry for Purchase of Plant from Joint Bank Account
The correct journal entry for the purchase of a plant from a joint bank account, when separate sets of books are maintained, is as follows:
Option B: Joint Venture A/c will be debited and Joint Bank A/c will be credited
Explanation:
When a plant is purchased from a joint bank account, it implies that the purchase is made on behalf of a joint venture. In a joint venture, two or more parties come together to carry out a specific business activity, and they maintain a joint bank account to manage the financial transactions related to that venture.
Here's a detailed explanation of the journal entry:
1. Joint Venture A/c debited:
- The Joint Venture A/c is debited to record the purchase of the plant. This account represents the joint venture entity and is used to record all the transactions related to the joint venture.
- Debiting the Joint Venture A/c increases its value, indicating that an asset (the plant) has been acquired.
2. Joint Bank A/c credited:
- The Joint Bank A/c is credited to reflect the decrease in the joint venture's bank balance due to the purchase of the plant.
- Crediting the Joint Bank A/c reduces its balance, as cash has been utilized for the purchase.
Reasoning:
The correct journal entry is option B because it accurately reflects the nature of the transaction. The purchase is made on behalf of the joint venture, so the Joint Venture A/c is debited. Simultaneously, the joint venture's bank balance decreases, so the Joint Bank A/c is credited.
The other options (A, C, and D) are not correct because they do not consider the joint venture aspect and the specific nature of the transaction involving the joint bank account.
Conclusion:
When purchasing a plant from a joint bank account, it is essential to consider the joint venture entity and the specific accounting treatment associated with it. The correct journal entry is to debit the Joint Venture A/c and credit the Joint Bank A/c. This ensures that the transaction is accurately recorded and reflects the joint venture's financial position.
The correct journal entry for the purchase of a plant from a joint bank account, when separate sets of books are maintained, is as follows:
Option B: Joint Venture A/c will be debited and Joint Bank A/c will be credited
Explanation:
When a plant is purchased from a joint bank account, it implies that the purchase is made on behalf of a joint venture. In a joint venture, two or more parties come together to carry out a specific business activity, and they maintain a joint bank account to manage the financial transactions related to that venture.
Here's a detailed explanation of the journal entry:
1. Joint Venture A/c debited:
- The Joint Venture A/c is debited to record the purchase of the plant. This account represents the joint venture entity and is used to record all the transactions related to the joint venture.
- Debiting the Joint Venture A/c increases its value, indicating that an asset (the plant) has been acquired.
2. Joint Bank A/c credited:
- The Joint Bank A/c is credited to reflect the decrease in the joint venture's bank balance due to the purchase of the plant.
- Crediting the Joint Bank A/c reduces its balance, as cash has been utilized for the purchase.
Reasoning:
The correct journal entry is option B because it accurately reflects the nature of the transaction. The purchase is made on behalf of the joint venture, so the Joint Venture A/c is debited. Simultaneously, the joint venture's bank balance decreases, so the Joint Bank A/c is credited.
The other options (A, C, and D) are not correct because they do not consider the joint venture aspect and the specific nature of the transaction involving the joint bank account.
Conclusion:
When purchasing a plant from a joint bank account, it is essential to consider the joint venture entity and the specific accounting treatment associated with it. The correct journal entry is to debit the Joint Venture A/c and credit the Joint Bank A/c. This ensures that the transaction is accurately recorded and reflects the joint venture's financial position.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
For purchase of plant from Joint Bank Account, in case separate sets of books are maintained, the correct journal entry will be:a)Plant A/c will be debited and Joint Bank A/c will be creditedb)Joint Venture A/c will be debited and Joint Bank A/c will be creditedc)Plant A/c will be debited and Venturers Capital A/c will be creditedd)Joint Venture A/c will be debited and Plant A/c will be creditedCorrect answer is option 'B'. Can you explain this answer?
Question Description
For purchase of plant from Joint Bank Account, in case separate sets of books are maintained, the correct journal entry will be:a)Plant A/c will be debited and Joint Bank A/c will be creditedb)Joint Venture A/c will be debited and Joint Bank A/c will be creditedc)Plant A/c will be debited and Venturers Capital A/c will be creditedd)Joint Venture A/c will be debited and Plant A/c will be creditedCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about For purchase of plant from Joint Bank Account, in case separate sets of books are maintained, the correct journal entry will be:a)Plant A/c will be debited and Joint Bank A/c will be creditedb)Joint Venture A/c will be debited and Joint Bank A/c will be creditedc)Plant A/c will be debited and Venturers Capital A/c will be creditedd)Joint Venture A/c will be debited and Plant A/c will be creditedCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for For purchase of plant from Joint Bank Account, in case separate sets of books are maintained, the correct journal entry will be:a)Plant A/c will be debited and Joint Bank A/c will be creditedb)Joint Venture A/c will be debited and Joint Bank A/c will be creditedc)Plant A/c will be debited and Venturers Capital A/c will be creditedd)Joint Venture A/c will be debited and Plant A/c will be creditedCorrect answer is option 'B'. Can you explain this answer?.
For purchase of plant from Joint Bank Account, in case separate sets of books are maintained, the correct journal entry will be:a)Plant A/c will be debited and Joint Bank A/c will be creditedb)Joint Venture A/c will be debited and Joint Bank A/c will be creditedc)Plant A/c will be debited and Venturers Capital A/c will be creditedd)Joint Venture A/c will be debited and Plant A/c will be creditedCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about For purchase of plant from Joint Bank Account, in case separate sets of books are maintained, the correct journal entry will be:a)Plant A/c will be debited and Joint Bank A/c will be creditedb)Joint Venture A/c will be debited and Joint Bank A/c will be creditedc)Plant A/c will be debited and Venturers Capital A/c will be creditedd)Joint Venture A/c will be debited and Plant A/c will be creditedCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for For purchase of plant from Joint Bank Account, in case separate sets of books are maintained, the correct journal entry will be:a)Plant A/c will be debited and Joint Bank A/c will be creditedb)Joint Venture A/c will be debited and Joint Bank A/c will be creditedc)Plant A/c will be debited and Venturers Capital A/c will be creditedd)Joint Venture A/c will be debited and Plant A/c will be creditedCorrect answer is option 'B'. Can you explain this answer?.
Solutions for For purchase of plant from Joint Bank Account, in case separate sets of books are maintained, the correct journal entry will be:a)Plant A/c will be debited and Joint Bank A/c will be creditedb)Joint Venture A/c will be debited and Joint Bank A/c will be creditedc)Plant A/c will be debited and Venturers Capital A/c will be creditedd)Joint Venture A/c will be debited and Plant A/c will be creditedCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of For purchase of plant from Joint Bank Account, in case separate sets of books are maintained, the correct journal entry will be:a)Plant A/c will be debited and Joint Bank A/c will be creditedb)Joint Venture A/c will be debited and Joint Bank A/c will be creditedc)Plant A/c will be debited and Venturers Capital A/c will be creditedd)Joint Venture A/c will be debited and Plant A/c will be creditedCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
For purchase of plant from Joint Bank Account, in case separate sets of books are maintained, the correct journal entry will be:a)Plant A/c will be debited and Joint Bank A/c will be creditedb)Joint Venture A/c will be debited and Joint Bank A/c will be creditedc)Plant A/c will be debited and Venturers Capital A/c will be creditedd)Joint Venture A/c will be debited and Plant A/c will be creditedCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for For purchase of plant from Joint Bank Account, in case separate sets of books are maintained, the correct journal entry will be:a)Plant A/c will be debited and Joint Bank A/c will be creditedb)Joint Venture A/c will be debited and Joint Bank A/c will be creditedc)Plant A/c will be debited and Venturers Capital A/c will be creditedd)Joint Venture A/c will be debited and Plant A/c will be creditedCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of For purchase of plant from Joint Bank Account, in case separate sets of books are maintained, the correct journal entry will be:a)Plant A/c will be debited and Joint Bank A/c will be creditedb)Joint Venture A/c will be debited and Joint Bank A/c will be creditedc)Plant A/c will be debited and Venturers Capital A/c will be creditedd)Joint Venture A/c will be debited and Plant A/c will be creditedCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice For purchase of plant from Joint Bank Account, in case separate sets of books are maintained, the correct journal entry will be:a)Plant A/c will be debited and Joint Bank A/c will be creditedb)Joint Venture A/c will be debited and Joint Bank A/c will be creditedc)Plant A/c will be debited and Venturers Capital A/c will be creditedd)Joint Venture A/c will be debited and Plant A/c will be creditedCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup