Reference no: EM132733451

Ma and Me in a joint venture contributed 150,000 cah in order to purchase canned goods which were sold by lots a closing-out sale. They agreed to divide their profits equally and each shall record his purchase, sales and expenses in his own books. After selling almost all the canned goods, they wind up their venture. The following data relate to the venture transactions:

• Joint venture credit balances are as follows: Me - P120,000, Ma - P105,000
• Expenses paid from joint venture cash were P15,000 by Me and P19,500 by Ma
• Cost of unsold canned goods which Me and Ma agreed to assume were P4,500 and P7,000 respectively

Requirements:

Problem a. How much is the total sales of the joint venture? Explain the answer.

Problem b. How much is the share of Ma on the venture profit? Explain the answer.

Problem c. How much is the final settlement due to Me including his investment? Explain the answer.