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If separate set of books is maintained and discount is received at the time of purchase of goods then such a discount will be treated as :
- a)Income of Joint Venture hence credited to joint venture account
- b)Expense of Joint venture hence debited to joint venture account
- c)Will not be recorded in books of account
- d)Credited to co-venturer account
Correct answer is option 'A'. Can you explain this answer?
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If separate set of books is maintained and discount is received at the...
If a separate set of books is maintained and discount is received at the time of purchase of goods then such a discount will be treated as income of joint Venture hence credited venture account. Expense of Joint Venture hence debited to joint venture account.
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If separate set of books is maintained and discount is received at the...
Answer:
Discounts received at the time of purchasing goods and maintaining a separate set of books in a joint venture are treated as income of the joint venture and credited to the joint venture account. This treatment is in line with the accounting principles and practices followed in joint ventures.
Explanation:
When a joint venture is formed, the co-venturers agree to contribute resources towards the venture's activities. These resources can include cash, goods, or services. In the case of purchasing goods, discounts may be offered by the suppliers to encourage bulk purchases or to establish a long-term relationship.
When a discount is received at the time of purchasing goods, it is considered a benefit to the joint venture. Therefore, it is treated as income and credited to the joint venture account. This ensures that the benefit of the discount is accounted for correctly and reflected in the financial statements of the joint venture.
The joint venture account is a nominal account that records all the income, expenses, gains, and losses related to the joint venture. By crediting the discount received to the joint venture account, it is included in the calculation of the joint venture's net income or loss. This allows for a true and fair presentation of the joint venture's financial performance.
It is important to maintain a separate set of books for the joint venture to accurately record its financial transactions and activities. This ensures that the joint venture's financial records are distinct from those of the individual co-venturers and provides transparency and accountability.
In summary, when a separate set of books is maintained for a joint venture and a discount is received at the time of purchasing goods, the discount is treated as income of the joint venture and credited to the joint venture account. This treatment ensures proper accounting and reporting of the joint venture's financial performance.
Discounts received at the time of purchasing goods and maintaining a separate set of books in a joint venture are treated as income of the joint venture and credited to the joint venture account. This treatment is in line with the accounting principles and practices followed in joint ventures.
Explanation:
When a joint venture is formed, the co-venturers agree to contribute resources towards the venture's activities. These resources can include cash, goods, or services. In the case of purchasing goods, discounts may be offered by the suppliers to encourage bulk purchases or to establish a long-term relationship.
When a discount is received at the time of purchasing goods, it is considered a benefit to the joint venture. Therefore, it is treated as income and credited to the joint venture account. This ensures that the benefit of the discount is accounted for correctly and reflected in the financial statements of the joint venture.
The joint venture account is a nominal account that records all the income, expenses, gains, and losses related to the joint venture. By crediting the discount received to the joint venture account, it is included in the calculation of the joint venture's net income or loss. This allows for a true and fair presentation of the joint venture's financial performance.
It is important to maintain a separate set of books for the joint venture to accurately record its financial transactions and activities. This ensures that the joint venture's financial records are distinct from those of the individual co-venturers and provides transparency and accountability.
In summary, when a separate set of books is maintained for a joint venture and a discount is received at the time of purchasing goods, the discount is treated as income of the joint venture and credited to the joint venture account. This treatment ensures proper accounting and reporting of the joint venture's financial performance.
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If separate set of books is maintained and discount is received at the time of purchase of goods then such a discount will be treated as :a)Income of Joint Venture hence credited to joint venture accountb)Expense of Joint venture hence debited to joint venture accountc)Will not be recorded in books of accountd)Credited to co-venturer accountCorrect answer is option 'A'. Can you explain this answer?
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If separate set of books is maintained and discount is received at the time of purchase of goods then such a discount will be treated as :a)Income of Joint Venture hence credited to joint venture accountb)Expense of Joint venture hence debited to joint venture accountc)Will not be recorded in books of accountd)Credited to co-venturer accountCorrect answer is option 'A'. 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 If separate set of books is maintained and discount is received at the time of purchase of goods then such a discount will be treated as :a)Income of Joint Venture hence credited to joint venture accountb)Expense of Joint venture hence debited to joint venture accountc)Will not be recorded in books of accountd)Credited to co-venturer accountCorrect answer is option 'A'. 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 If separate set of books is maintained and discount is received at the time of purchase of goods then such a discount will be treated as :a)Income of Joint Venture hence credited to joint venture accountb)Expense of Joint venture hence debited to joint venture accountc)Will not be recorded in books of accountd)Credited to co-venturer accountCorrect answer is option 'A'. Can you explain this answer?.
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