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BDO and OSD formed a joint operation to buy and sell certain merchandise. Their capital contributions and profit and loss ratios are presented below: Contributions
BDO and OSD formed a joint operation to buy and sell certain merchandise. Their capital contributions and profit and loss ratios are presented below: Contributions Cash Merchandise P & L Ratio BDO P5.000 P8,000 50% OSD 6,000 50% A summary of the joint operation activities is as follows: Purchases of merchandise by OSD P4,000 Expenses paid by OSD Taxes and licenses p 400 Freight on merchandise contributed by BDO Delivery expense on merchandise sold Sales (all of the merchandise contributed and purchased by OSD and one-half of those contributed by BDO) selling price 14,000 The joint operation is terminated. Compute the share of OSD in income? 300 200
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