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Which of the following statement is true?
  • a)
    When separate set of books is maintained, expenses paid by venturer will be credited to joint bank account.
  • b)
    When separate set of books is maintained, expenses paid by venturer will be credited to venturer’s capital account.
  • c)
    When separate set of books is maintained, expenses paid by venturer will be credited to Jt. venture account.
  • d)
    When separate set of books is maintained, expenses paid by venturer will be credited to Outstanding Expenses Account.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Which of the following statement is true?a)When separate set of books ...
Explanation:

When two or more persons join together to carry on a particular business venture, it is called a joint venture. In a joint venture, the contribution may be in the form of capital, goods, or services. The profits and losses of the venture are shared among the venturers in the agreed ratio.

When separate books are maintained for joint venture, each venturer maintains his own books to record his transactions relating to the venture. The transactions of the joint venture are also recorded in a separate set of books called Joint Venture Account.

Expenses Paid by Venturer:

When a venturer incurs expenses on behalf of the joint venture, he is entitled to be reimbursed for the same from the joint venture account. The following entries are passed in the books of the venturer:

- Expenses paid by the venturer are debited to Joint Venture Account.
- The same amount is credited to the venturer's Capital Account.

Therefore, the correct option is B) When separate set of books is maintained, expenses paid by the venturer will be credited to the venturer's capital account.

Conclusion:

In a joint venture, when separate books are maintained, the expenses paid by the venturer are credited to his own Capital Account and debited to the Joint Venture Account. This helps in maintaining a proper record of the expenses incurred by the venturer and the reimbursement received from the joint venture.
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Community Answer
Which of the following statement is true?a)When separate set of books ...
Join venture a/c dr.
To venture'scapital alc
#entry of exp personally paid by venturers.
Tei vayera b
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Which of the following statement is true?a)When separate set of books is maintained, expenses paid by venturer will be credited to joint bank account.b)When separate set of books is maintained, expenses paid by venturer will be credited to venturer’s capital account.c)When separate set of books is maintained, expenses paid by venturer will be credited to Jt. venture account.d)When separate set of books is maintained, expenses paid by venturer will be credited to Outstanding Expenses Account.Correct answer is option 'B'. Can you explain this answer?
Question Description
Which of the following statement is true?a)When separate set of books is maintained, expenses paid by venturer will be credited to joint bank account.b)When separate set of books is maintained, expenses paid by venturer will be credited to venturer’s capital account.c)When separate set of books is maintained, expenses paid by venturer will be credited to Jt. venture account.d)When separate set of books is maintained, expenses paid by venturer will be credited to Outstanding Expenses Account.Correct 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 Which of the following statement is true?a)When separate set of books is maintained, expenses paid by venturer will be credited to joint bank account.b)When separate set of books is maintained, expenses paid by venturer will be credited to venturer’s capital account.c)When separate set of books is maintained, expenses paid by venturer will be credited to Jt. venture account.d)When separate set of books is maintained, expenses paid by venturer will be credited to Outstanding Expenses Account.Correct 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 Which of the following statement is true?a)When separate set of books is maintained, expenses paid by venturer will be credited to joint bank account.b)When separate set of books is maintained, expenses paid by venturer will be credited to venturer’s capital account.c)When separate set of books is maintained, expenses paid by venturer will be credited to Jt. venture account.d)When separate set of books is maintained, expenses paid by venturer will be credited to Outstanding Expenses Account.Correct answer is option 'B'. Can you explain this answer?.
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