Joint arrangement

Use the foiiowing information for the next two questions: A and B formed a joint operation. The following were the transactions during the year: A B Total purchases 400 320 Total sales 480 240 Expenses paid 800 Other income 40 The joint operation was completed at the end of the year. Each joint operator is entitled to a 10% commission on its purchases and a 20% commission on its sales. Any remaining prot or loss is divided equally. 5. How much is the profit (loss) of the joint operation? a. 760 b. (760} c. 840 d. (840) 6. 0n the cash settlement between the joint operators, a. A pays B P368 c. A pays B P428 b. B pays A P368 d. B pays A P428 7. A, B, and C formed a joint operation which was completed during the year. A is the appointed manager who will be entitled to a 10% bonus of prot before bonus. Prot or loss after bonus to A is divided equally among the joint operators. The accounts of B and C show the following balances: Books ofB Books of C Account with A 16 Cr. 16 Cr. Account with B 48 Cr. Account with C 56 Dr. Unsold merchandise was charged to A at a cost of P88. On the cash settlement between the-joint operators, a. A receives P72; C pays P32 c. B receives P72; C pays P32 b. B pays P72; A pays P40 d. None of these 8. A, B, and C formed a joint operation which was completed during the year. The accounts of the joint operators show the following balances: Books o A Books 0 B Books g C Account with A - 10 Dr. 10 Dr. Account with B 16 Dr. - 16 Dr. Account with C 26 Cr. 26 Cr. 0n the cash settlement between the joint operators, a. A receives P26; C pays P16 c. C receives 916; A pays no b. B pays P16; A pays P10 d. None of these 9. A, B, and C formed a joint operation. Profit or loss shall be divided equally. The following were taken from the joint operation's hooks: Debit Credit JO Cash 80 Joint operation 20 B, Capital 60 c, Capital 40 A's share in the joint operation's profit is P16. A agreed to be charged for the unsold merchandise as of yearend. How much is the cost of unsold merchandise charged to A? a. 56 b. 62 c. 63 d. 72 1D. A, B, and C formed a joint operation. The following were taken from the joint operation's books: Debit Credit JO Cash 80 6. Capital 60 C, Capital 88 The cost of unsold inventory is P72. The joint operation's profit is P44. How much is the balance of the joint operation account before distribution of profit? a. 23 b. 116 c. 56 d. D