Reference no: EM133166293
Question - Dan Company, where one of its employees, Peter, acts as the fund custodian. Change go Dan Company, Ed Company and Fe Company pooled their resources to buy and sell sports equipment. Profits are to be divided according to the ratio of 4:3:3, respectively. An employee of Dan Company, Peter was tasked to act as the manager. Their transactions are as follows:
1. Each of the operators contributed 250,000 cash
2. Peter purchased the goods for 600,000 including 150,000 import duties and freight
3. Operating expenses were paid by Peter 75,000
4. The goods were sold for cash P700,000
5. Only 80% of the equipment were sold
6. The 20% unsold goods were taken by Dan Company
7. Profit was determined at this point
Entry to finally close operation with the settlement made by Peter.
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