When a complete set of books are maintained for the joint venture and in case where an amount is spent on account of expenses or for purchasing goods for the venture, the entry would be

Question

Quizplus · Accepted Answer

When expenses are incurred or goods are purchased for the joint venture, the Joint Venture Account is debited because it represents an increase in the expenses or assets of the joint venture, and the Joint Bank Account is credited, reflecting the outflow of cash from the joint venture's bank account.

When a Complete Set of Books Are Maintained for the Joint