Question

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

Answer 1

The correct answer is D. joint venture account and credit bank account

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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