Reyes and Santos formed a joint operation to acquire and sell a particular lot of merchandise Reyes was to manage the operation and to furnish the capital, and the operators were to share equal in any gain or loss. On June 10, 2024. Santos sent Reyes P10.000 cash, which was immediately used to purchase merchandise which cost P10,000. Reyes paid freight of P240 on the merchandise purchased. On June 24, one half merchandise was sold for P7,200 cash. Reves paid the cost of delivering merchandise to customers, which amounted to P260. No further transactions occurred on June 30, 2024. 1. The profit (loss) of the operation for the period June 10 - June 30, 2024 is: 2.On June 30, 2024 after recognizing the profit (loss) on the uncompleted operation, the account of Santos on the books of Reyes will show a debit (credit) balance of:
Reyes and Santos formed a joint operation to acquire and sell a particular lot of merchandise Reyes was to manage the operation and to furnish the capital, and the operators were to share equal in any gain or loss. On June 10, 2024. Santos sent Reyes P10.000 cash, which was immediately used to purchase merchandise which cost P10,000. Reyes paid freight of P240 on the merchandise purchased. On June 24, one half merchandise was sold for P7,200 cash. Reves paid the cost of delivering merchandise to customers, which amounted to P260. No further transactions occurred on June 30, 2024.
1. The
2.On June 30, 2024 after recognizing the profit (loss) on the uncompleted operation, the account of Santos on the books of Reyes will show a debit (credit) balance of:
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