Bang, Bing and Bong formed a joint venture in 2010 to sell computers. They assigned Bing as the manager of the joint venture. They agreed to divide profits equally. They terminated the venture on December 21, 2011 with unsold merchandise. On this date, Bing’s trial balance shows the following account balances before profit distribution: Debits: Joint Venture Cash P90,000, Joint Venture P23,500, Bong, Capital P15,600. Credit: Bang, Capital P32,500. Bing received P 5,300 as her share in the joint venture profit. Bing agreed to be charged for the unsold merchandise as of December 31, 2010. What is the amount due to Bang upon final settlement? *Your answer
Bang, Bing and Bong formed a joint venture in 2010 to sell computers. They assigned Bing as the manager of the joint venture. They agreed to divide profits equally. They terminated the venture on December 21, 2011 with unsold merchandise. On this date, Bing’s trial balance shows the following account balances before profit distribution: Debits: Joint Venture Cash P90,000, Joint Venture P23,500, Bong, Capital P15,600. Credit: Bang, Capital P32,500. Bing received P 5,300 as her share in the joint venture profit. Bing agreed to be charged for the unsold merchandise as of December 31, 2010. What is the amount due to Bang upon final settlement? *Your answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bang, Bing and Bong formed a joint venture in 2010 to sell computers. They assigned Bing as the manager of the joint venture. They agreed to divide profits equally. They terminated the venture on December 21, 2011 with unsold merchandise. On this date, Bing’s trial balance shows the following account balances before profit distribution: Debits: Joint Venture Cash P90,000, Joint Venture P23,500, Bong, Capital P15,600. Credit: Bang, Capital P32,500. Bing received P 5,300 as her share in the joint venture profit. Bing agreed to be charged for the unsold merchandise as of December 31, 2010. What is the amount due to Bang upon final settlement? *Your answer
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