How much is the venture profit for the four-month

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V and R formed a joint venture on January 1, 2020 to operate two stores to be managed by each participant. They agreed to contribute cash as follows: V - P300,000; R - P200,000. Profits and losses are to be divided in the capital ratio. All venture transactions are for cash. Cash receipts and disbursements of the business during the 4-month period handled through the participant's personal bank account are as follows:
On April 30, the remaining non-cash venture assets in the hands of the participants were sold for P600,000. The venture is terminated and settlement is made between V and R.

Requirements:

Problem a. How much is the venture profit (loss) for the 4-month period after selling the remaining venture assets? Explain the answer.

Problem b. Using the information, the P600,000 is divided between the participants as what amount? Explain the answer

Reference no: EM132724698

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