How much is the total amount of claims of berlin upon termination? an preing unilateralsent. If the requiremthat give a party proteclvant activities of an arrangement,sence of unanimous consent among the parties that havehe existence of such provisions does not prevent theom being jointly controlled and, consequently, from beinggement might include clauses on the resolution ofrbitration. These provisions may allow for decisions torol of the arrangement.ment is outside the scope of IFRS 11, an entity accountsrrangement in accordance with relevant IFRSS, suchended in 2011) or IFRS 9.ement.CHAPTER 6: JOINT ARRANGEMENTS16. Berlin and Rio are participants in a joint arrangement for the purchasethrough bidding and sales of surplus auto parts from La Casa. Thewinning bid price of P400,000 was paid equally by Berlin and Rio,constituting their investments in joint arrangement. They agreed thateach record his own purchases, sales, and expenses in his own booksand share profit and losses equally.After seven months, the arrangement was terminated, and thefollowing data is available:Joint arrangement accountExpenses paidInventory takenBerlinRioCompany175,000Company155,0007,5005,50015,00018,000

Wining bid 400000 Share of berlin in the bid 200000 Share of Rio in the bid 200000

CHAPTER 6: JOINT ARRANGEMENTS 16. Berlin and Rio are participants in a joint arrangement for the purchase through bidding and sales of surplus auto parts from La Casa. The winning bid price of P400,000 was paid equally by Berlin and Rio, constituting their investments in joint arrangement. They agreed that each record his own purchases, sales, and expenses in his own books and share profit and losses equally. After seven months, the arrangement was terminated, and the following data is available: Berlin Rio Joint arrangement account Expenses paid Inventory taken Company 155,000 7,500 Company 175,000 15,000 18,000 5,500

CHAPTER 6: JOINT ARRANGEMENTS 16. Berlin and Rio are participants in a joint arrangement for the purchase through bidding and sales of surplus auto parts from La Casa. The winning bid price of P400,000 was paid equally by Berlin and Rio, constituting their investments in joint arrangement. They agreed that each record his own purchases, sales, and expenses in his own books and share profit and losses equally. After seven months, the arrangement was terminated, and the following data is available: Berlin Rio Joint arrangement account Expenses paid Inventory taken Company 155,000 7,500 Company 175,000 15,000 18,000 5,500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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