Multiple choice

What type of account is memorandum joint venture account?

  1. Personal account

  2. Real account

  3. Nominal account

  4. Sales account
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Memorandum joint venture account is a nominal account because it records the profit or loss from the joint venture transaction. It is maintained outside the regular books of account (hence 'memorandum') to compute each co-venturer's share of profit or loss, which is then transferred to their personal accounts. It is not a real account (assets) or personal account (persons).

Keep practicing — related questions