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If a venturer draws a bill on his co-venturer and if the drawer discounts the bill with same sets of books maintained, the discounting charges will be borne by:
- a)The drawer of the bill
- b)The drawee of the bill
- c)The discounting charges will be recorded in memorandum joint venture account
- d)The discounting charges will be borne by bank
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
If a venturer draws a bill on his co-venturer and if the drawer discou...
Explanation:
When a venturer draws a bill on his co-venturer, it means that the venturer is requesting his co-venturer to pay a certain amount at a future date. In such a scenario, the drawer of the bill may choose to discount the bill with the same sets of books maintained.
Discounting a Bill:
Discounting a bill means that the drawer of the bill sells the bill to a third party (usually a bank) before the maturity date at a discounted price. The discount is the difference between the face value of the bill and the amount received from the third party. The drawer receives immediate cash from the bank in exchange for the bill.
Recording the Discounting Charges:
In a joint venture, the discounting charges incurred on the bill will be recorded in the memorandum joint venture account.
Reasons:
1. The discounting charges represent an expense incurred by the venturer in the joint venture.
2. The discounting charges are not directly borne by either the drawer of the bill or the drawee of the bill. Instead, they are shared by all the co-venturers in the joint venture.
3. By recording the discounting charges in the memorandum joint venture account, the expenses are appropriately allocated among the co-venturers.
Memorandum Joint Venture Account:
The memorandum joint venture account is a temporary account used to record the transactions and expenses related to a joint venture. It helps in keeping track of the financial activities and settling the accounts among the co-venturers.
Conclusion:
In conclusion, when a venturer discounts a bill with the same sets of books maintained in a joint venture, the discounting charges will be recorded in the memorandum joint venture account. This ensures that the expenses are shared among the co-venturers and properly accounted for in the joint venture.
When a venturer draws a bill on his co-venturer, it means that the venturer is requesting his co-venturer to pay a certain amount at a future date. In such a scenario, the drawer of the bill may choose to discount the bill with the same sets of books maintained.
Discounting a Bill:
Discounting a bill means that the drawer of the bill sells the bill to a third party (usually a bank) before the maturity date at a discounted price. The discount is the difference between the face value of the bill and the amount received from the third party. The drawer receives immediate cash from the bank in exchange for the bill.
Recording the Discounting Charges:
In a joint venture, the discounting charges incurred on the bill will be recorded in the memorandum joint venture account.
Reasons:
1. The discounting charges represent an expense incurred by the venturer in the joint venture.
2. The discounting charges are not directly borne by either the drawer of the bill or the drawee of the bill. Instead, they are shared by all the co-venturers in the joint venture.
3. By recording the discounting charges in the memorandum joint venture account, the expenses are appropriately allocated among the co-venturers.
Memorandum Joint Venture Account:
The memorandum joint venture account is a temporary account used to record the transactions and expenses related to a joint venture. It helps in keeping track of the financial activities and settling the accounts among the co-venturers.
Conclusion:
In conclusion, when a venturer discounts a bill with the same sets of books maintained in a joint venture, the discounting charges will be recorded in the memorandum joint venture account. This ensures that the expenses are shared among the co-venturers and properly accounted for in the joint venture.
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If a venturer draws a bill on his co-venturer and if the drawer discounts the bill with same sets of books maintained, the discounting charges will be borne by:a)The drawer of the billb)The drawee of the billc)The discounting charges will be recorded in memorandum joint venture accountd)The discounting charges will be borne by bankCorrect answer is option 'C'. Can you explain this answer?
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If a venturer draws a bill on his co-venturer and if the drawer discounts the bill with same sets of books maintained, the discounting charges will be borne by:a)The drawer of the billb)The drawee of the billc)The discounting charges will be recorded in memorandum joint venture accountd)The discounting charges will be borne by bankCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If a venturer draws a bill on his co-venturer and if the drawer discounts the bill with same sets of books maintained, the discounting charges will be borne by:a)The drawer of the billb)The drawee of the billc)The discounting charges will be recorded in memorandum joint venture accountd)The discounting charges will be borne by bankCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If a venturer draws a bill on his co-venturer and if the drawer discounts the bill with same sets of books maintained, the discounting charges will be borne by:a)The drawer of the billb)The drawee of the billc)The discounting charges will be recorded in memorandum joint venture accountd)The discounting charges will be borne by bankCorrect answer is option 'C'. Can you explain this answer?.
If a venturer draws a bill on his co-venturer and if the drawer discounts the bill with same sets of books maintained, the discounting charges will be borne by:a)The drawer of the billb)The drawee of the billc)The discounting charges will be recorded in memorandum joint venture accountd)The discounting charges will be borne by bankCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If a venturer draws a bill on his co-venturer and if the drawer discounts the bill with same sets of books maintained, the discounting charges will be borne by:a)The drawer of the billb)The drawee of the billc)The discounting charges will be recorded in memorandum joint venture accountd)The discounting charges will be borne by bankCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If a venturer draws a bill on his co-venturer and if the drawer discounts the bill with same sets of books maintained, the discounting charges will be borne by:a)The drawer of the billb)The drawee of the billc)The discounting charges will be recorded in memorandum joint venture accountd)The discounting charges will be borne by bankCorrect answer is option 'C'. Can you explain this answer?.
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If a venturer draws a bill on his co-venturer and if the drawer discounts the bill with same sets of books maintained, the discounting charges will be borne by:a)The drawer of the billb)The drawee of the billc)The discounting charges will be recorded in memorandum joint venture accountd)The discounting charges will be borne by bankCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for If a venturer draws a bill on his co-venturer and if the drawer discounts the bill with same sets of books maintained, the discounting charges will be borne by:a)The drawer of the billb)The drawee of the billc)The discounting charges will be recorded in memorandum joint venture accountd)The discounting charges will be borne by bankCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of If a venturer draws a bill on his co-venturer and if the drawer discounts the bill with same sets of books maintained, the discounting charges will be borne by:a)The drawer of the billb)The drawee of the billc)The discounting charges will be recorded in memorandum joint venture accountd)The discounting charges will be borne by bankCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
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