A and B formed a joint operation. The following were the transactions during the year: A...

 

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A and B formed a joint operation. The following were the transactions during the year: A B Total purchases 400 320 Total sales 480 240 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. On the cash settlement, how much should A received from B? A and B formed a joint operation. The following were the transactions during the year: A B Total purchases 400 320 Total sales 480 240 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. On the cash settlement, how much should A received from B?

Answer rating: 100% (QA)

Solution Calculation of joint profit Total sales 480240 720 Other inc... View the full answer