X, Y and Z agreed to form a joint operation. Profit or loss of the joint operation shall be divided equally. Y is appointed as the manager. The following were the transactions during the year: 

a. Inventory costing P1,000 was sent by X to Y. 

b. Freight paid by X on the inventories sent Y amounted to P50. 

c. Cash of P2,000 was sent by Z to Y to be used to purchase additional inventory. 

d. Y purchased additional inventory amounting to P2,500, P500 of which were made on account of Y. 

e. Cash sales made by Y amounted to P8,000 

f. Operating expenses amounting to P500 were paid by y using own cash. 

g. Unsold inventory at year - end amounted P300.  

I. If there is NO separate books maintained for Joint Operations:

6. How much is the profit or (loss) of the Joint Operations?

7. How much is the share of profit of X, Y and Z, respectively?

Assume that the Joint Operation is liquidated and Z is charged the unsold inventory at cost.

8. How much is the Joint Operation Cash (JO - Cash) to be shown in the book of Y?

9. How much is the cash receipt or (cash payment) of X, Y, and Z, respectively?

II. If there is separate books maintained for Joint Operations:

10. How much is the profit or (loss) of the Joint Operations? 

11. How much is the share of profit of X, Y, and Z, respectively?

12. How much is the investment in Joint Operations of X, Y, and Z, shown in their respective books?

13. How much is the capital balance of X, Y, and Z, respectively shown in JO Book?

Answer rating: 100% (QA)

To solve the accounting questions regarding the joint operation lets go step by step I If there are NO separate books maintained for Joint Operations 6 To calculate the profit or loss of the joint ope... View the full answer