Joint Venture-Test 3

Which of the following methods of valuation of closing stock is followed is Joint Venture accounting ?

When the expenses are incurred on account of joint venture, they are debited to _______ account.

Partners in ____ are called co-ventures.

When unsold stock is taken away by a co-venturer the _____ the account is debited.

Shares of a company taken over by A and B under underwriting contract, when sold by them will be credited to ______ account and the profit/loss on the sale of such shareholding will be transferred to _________ account

Under memorandum joint venture method, each party opens only one account which is of the nature of ______ account

X spending a sum of Rs.10,000 on account of joint venture, will be credited to ______ account in case of the records being maintained in books of X.

Joint Venture is a non-trading concern.

Joint Venture is a restricted partnership

The persons carrying on a joint venture business are known as co-partners.

As per status, the total no. of co-ventures cannot exceed 20.

The final Accounts of a co-venture also include the balance sheet prepared a the end of the venture.

The loss of goods due to fire is credited to Joint Venture Account.

A Joint venture business has a definite life.

The accounting concept of ‘going concern’ does not fully apply to a co-venture.

A co-venturer cannot attend to any other business.

A co-venture is prohibited by law from carrying on a business similar to that of the co-venture.

Co-venturers share the profits in the agreed ration.

If goods to the joint venture are brought in by a co-venturer then his capital account is credited.

When the venture recording transactions makes payment in respect of expenses, the joint venture account is debited.

When X takes away goods worth Rs.2,000 at the end of the venture, Joint Venture account will be credited if the records are being maintained in the books of X.

Y takes over goods at the end of the venture, purchases account will be debited if the records are being maintained separately.

Co-venturer’s contribution in cash is debited to Co-Venturer’s personal account.

In Memorandum Joint Venture Account Method, the CO-venturer records all the Transactions of the Joint Venture.

In a Joint Venture for purchase of land, between X and Y. Where separate book are kept: The entry for Contribution by Y of Rs.2,50,000 will be

In the books of X goods supplied by Y will be recorded as

In the books of X, Bills drawn on Y as an advance, will be recorded as

In the books of X, Sales made by Y will be recorded as

In a Joint venture for purchase of land, between X and Y, Where separate book are kept; at the end of the venture, remaining land of Rs.1,50,000 taken over by X, will be recorded as

In a Joint Venture for land, between X and Y, where separate book are kept; Where the ratio of contribution was 3:2; At the end of the venture, if there is a profit of Rs.50,000; in the absence of any specific profit sharing ratio, the following entry will be passed