On July 1, 2021, A, B, and C formed a joint venture for the sale of merchandise. A was designated as the n=managing participant. Profits or losses are to be divided as follows: A – 50%; B-25% and C-25%. On October 1, 2021, though the joint venture is still uncompleted, the participant agreed to recognize profit or loss on the venture to date. The cost of inventory on hand is determined at P25,000. The joint venture account has a debit balance of P15,000 before distribution of profit and loss. No separate set of books is maintained for the joint venture and the participants record in their individual books all venture transactions. a. The joint venture profit (loss) on October 1, 2021 is a. P10,000 Using the sme information above and the joint venture account has a credit balance of P30,000, the joint venture profit (loss) is a. (P55,000) b. P25,000 c. (P15,000) d. None b. P55,000 с. (Р5,000) d. P5,000

On July 1, 2021, A, B, and C formed a joint venture for the sale of merchandise. A was designated as the n=managing participant. Profits or losses are to be divided as follows: A – 50%; B-25% and C-25%. On October 1, 2021, though the joint venture is still uncompleted, the participant agreed to recognize profit or loss on the venture to date. The cost of inventory on hand is determined at P25,000. The joint venture account has a debit balance of P15,000 before distribution of profit and loss. No separate set of books is maintained for the joint venture and the participants record in their individual books all venture transactions. a. The joint venture profit (loss) on October 1, 2021 is a. P10,000 Using the sme information above and the joint venture account has a credit balance of P30,000, the joint venture profit (loss) is a. (P55,000) b. P25,000 c. (P15,000) d. None b. P55,000 с. (Р5,000) d. P5,000

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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