Use the following information for the next two questions: A and B formed a joint operation. The following were the transactions during the year: A B Total purchases 400 320 Total sales 960 720 Expenses paid 800 Other income 40 The joint operation was completed at the end of the year. Each joint operator is entitled to a 10% commission on its purchases and a 20% commission on its sales. Any remaining profit or loss is divided equally. How much is the profit (loss) of the joint operation? _____________________ On the cash settlement between the joint operators a. A pays B ₱368 b. B pays A ₱368 c. A pays B ₱428 d. B pays A ₱428
Use the following information for the next two questions: A and B formed a joint operation. The following were the transactions during the year: A B Total purchases 400 320 Total sales 960 720 Expenses paid 800 Other income 40 The joint operation was completed at the end of the year. Each joint operator is entitled to a 10% commission on its purchases and a 20% commission on its sales. Any remaining profit or loss is divided equally. How much is the profit (loss) of the joint operation? _____________________ On the cash settlement between the joint operators a. A pays B ₱368 b. B pays A ₱368 c. A pays B ₱428 d. B pays A ₱428
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Use the following information for the next two questions:
A and B formed a joint operation. The following were the transactions during the year:
|
|
A |
B |
|
Total purchases |
400 |
320 |
|
Total sales |
960 |
720 |
|
Expenses paid |
800 |
|
|
Other income |
40 |
The joint operation was completed at the end of the year. Each joint operator is entitled to a 10% commission on its purchases and a 20% commission on its sales. Any remaining profit or loss is divided equally.
- How much is the profit (loss) of the joint operation? _____________________
- On the cash settlement between the joint operators
a. A pays B ₱368
b. B pays A ₱368
c. A pays B ₱428
d. B pays A ₱428
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