AA, BB and CC enter into a joint arrangement classified as joint operations. CC is the appointed

manger of the operations. The transactions of the business for 2020 are as follows:

1. AA contributes inventory costing P100,000 and paid P20,000 for the freight to deliver the goods to CC.

2. BB contributes cash amounting to P175,000.

3. CC purchase merchandise amounting to P125,000 using the cash contributed by BB.

4. Merchandise costing P220,000 were sold by CC for P950,000 on account.

5. An operating expenses of P230,000 was paid by CC, of which P180,000 came from his own fund.

6. Collected the receivables in full.

7. CC is to be given a bonus of 10% of profits before deducting the profits plus a salary of P20,000.

Any remaining profits will be divided equally among the operators.

8. Any remaining inventory will be taken by AA.

Prepare all the journal entries upon termination of the joint arrangement, assuming

1. No separate records will be maintained by the operators

2. A separate records will be maintained by the operators