When expenses are paid on behalf of the venture, the accounting entries is to debit...
FINANCIAL
JAMB 2017
When expenses are paid on behalf of the venture, the accounting entries is to debit
- A. bank account and credit joint venture account
- B. expenses account and credit bank account
- C. joint venture account and credit expenses account
- D. joint venture account and credit bank account
Correct Answer: D. joint venture account and credit bank account
Explanation
Joint venture account is an account that all expenditure incurred for the venture is debited and all income is credited to. Debit joint venture and credit bank account because expenses incurred on behalf of the venture has to be debited to the joint venture account and since the money is joint out the bank must be credited to balance the account
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