Reference no: EM132638954

Questions -

Q1. MM and RR agreed on a joint operation to purchase and sell car accessories. They agreed to contribute P 25,000 each to be used in purchasing the merchandise, share equally in any gain or loss, and record their operation transactions in their individual books. After one year, they decided to terminate the operation, and data from their records were: Joint operation account credit balances: in books of MM, P 18,000; in books of RR, P 20,200, cost of car accessories taken: by MM, P 1,850; by RR, P 2,600, expenses paid: by MM, P 1,800; by RR, P 1,000. How much was the joint operation's sales?

Q2. Reyes, Silva and Tan formed a joint operation. Reyes was designated as the manager and was to record the joint operation's transactions in his own books. As manager, Reyes was to be allowed a salary of P 10,500; the remaining profit or loss was to be divided equally. The following balances appeared at the end of 2020, before adjustment for operation inventory and profit: Debit Credit Joint operation cash P 48,000 P - 4 Joint operation - 15,000 Silva, capital 1,000 - Tan, capital - 27,000 The operation was terminated on December 31, 2020 and unsold merchandise costing P 12,000 were taken over by Tan. Reyes made cash settlement with Silva and Tan. In the final cash settlement, how much did Tan receive?