How much is the profit or loss of the joint operations

Reference no: EM132639034

Question - X, Y, and Z agreed to form a joint operation. Profit or loss of the joint operation shall be divided equally. Y is appointed as the manager. The following were the transactions during the year:

Inventory costing P 1,000 was sent by X to Y.

Freight paid by on the inventories sent to Y amounted to P 50.

Cash of P 2,000 was sent by Z to Y to be used to purchase additional inventory.

Y purchased additional inventory amounting to P 2,500, P 500 of which were made on account of Y.

Cash sales made by Y amounted to P 8,000.

Operating expenses amounting to P 550 were paid by Y using own cash.

Unsold inventory at year-end amounted to P 300.

REQUIRED -

1. If there is no separate books maintained for Joint Operations, how much is the profit or loss of the Joint Operations?

2. Assume that the Joint Operation is liquidated and Z is charged the unsold inventory at cost, how much is the Joint Operation Cash to be shown in the books of Y?

3. How much is the cash receipt or (cash payment) of X, Y, and Z, respectively?

Reference no: EM132639034

Questions Cloud

Why does he think this would reduce tailgating : Two of the main topics studied in economics were opportunity cost and incentives. Choose one of the two topics below and respond to the questions.

Court system and judges : What is the dual-court system(civil/criminal), and why does America have a dual-court system? What factors would matter most to you when deciding a sentence?

Explain the purpose of preparing statement of profit or loss : Briefly explain the purpose of preparing the following:- i. Statement of profit or loss, ii. Working notes on the appropriation of profits

Draw a new diagram showing mark demand curve : A. Mark has $200 per month to spend on movie tickets (MT) and theater tickets (); movie tickets cost $10 each, and theater tickets cost $50 each.

How much is the profit or loss of the joint operations : Inventory costing P 1,000 was sent by X to Y. If there is no separate books maintained for Joint Operations, how much is the profit or loss of Joint Operations

About group who are targeted for hate crimes : Write an essay about a group who are targeted for hate crimes. Provide statistics about the scope of this problem.

Decrease the price of housing : "If we increase the supply of housing, all other things equal, we will decrease the price of housing.

Compensation fair for the lock : A man breaks into your house and steals several items. Upon breaking in he destroys a lock to get into the house

Difference between reasonable suspicion and probable cause : Explain the difference between reasonable suspicion and probable cause. What is the exclusionary rule?

User Account

All Pages