Question
Rose, Jen and Lea enter into a joint arrangement classified as joint operations. Lea is the appointed manger of the operations. The transactions of the
Rose, Jen and Lea enter into a joint arrangement classified as joint operations. Lea is the appointed manger of the operations. The transactions of the business for 2020 are as follows:
1.Rose contributes inventory costing P100,000 and paid P20,000 for the freight to deliver the goods to Lea.
2.Jen contributes cash amounting to P175,000.
3.Lea purchase merchandise amounting to P125,000 using the cashcontributed by Jen.
4.Merchandise costing P220,000 were sold by Lea for P950,000 on account.
5.An operating expenses of P230,000 was paid by Lea, of which P180,000 came from his own fund.
6.Collected the receivables in full.
7.Leais 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 Rose.
What are 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
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