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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 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 venturers account
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
If separate set of books is maintained and discount is received at the...
Discount received in Joint Venture

Explanation:
When a separate set of books is maintained for Joint Venture and a discount is received at the time of purchase of goods, then such a discount will be treated as income of Joint Venture hence credited to the venture account. This is because the discount received is a benefit to the Joint Venture and hence is considered as income.

Treatment of Discount Received

Since the discount received is a benefit to the Joint Venture, it is recorded in the books of account of the Joint Venture. The treatment of discount received is as follows:

- In case a separate set of books is maintained for Joint Venture, the discount received is credited to the venture account as income of Joint Venture.
- In case a separate set of books is not maintained for Joint Venture, the discount received is credited to the Joint Venture account as income.

Conclusion

In conclusion, when a discount is received at the time of purchase of goods and a separate set of books is maintained for Joint Venture, then such a discount will be considered as income of Joint Venture and credited to the venture account. This is because the discount received is a benefit to the Joint Venture and hence is considered as income.
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Community Answer
If separate set of books is maintained and discount is received at the...
Discount at the time of purchase is trade discount. So shouldn't it be neglected?
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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 venture accountb)Expense of Joint Venture hence debited to joint venture accountc)Will not be recorded in books of accountd)Credited to co venturers 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 venture accountb)Expense of Joint Venture hence debited to joint venture accountc)Will not be recorded in books of accountd)Credited to co venturers 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 venture accountb)Expense of Joint Venture hence debited to joint venture accountc)Will not be recorded in books of accountd)Credited to co venturers 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 venture accountb)Expense of Joint Venture hence debited to joint venture accountc)Will not be recorded in books of accountd)Credited to co venturers accountCorrect answer is option 'A'. Can you explain this answer?.
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