Easy, Average and difficult formed a joint operation. The following were their contributions: Easy, 100; Average,...

Transcribed Image Text:

Easy, Average and difficult formed a joint operation. The following were their contributions: Easy, 100; Average, 120; and difficult,80. On completion of the joint operation, the joint operators' books show the following balances: Personal Accounts (before closing) Easy 100 Cr. Average 120 Cr. Difficult 580 Dr. Expenses(paid from JO cash) Difficult 240 Unsold inventory taken Difficult 60 The contractual arrangement stipulates that Difficult, the appointed manager, is entitled to a salary of P6 and a bonus of 15% of profit after salary and bonus. Any balance of profit or loss is shared equally. How much were the sales of the joint operation? How much was Difficult's net share in the cash settlement? Easy, Average and difficult formed a joint operation. The following were their contributions: Easy, 100; Average, 120; and difficult,80. On completion of the joint operation, the joint operators' books show the following balances: Personal Accounts (before closing) Easy 100 Cr. Average 120 Cr. Difficult 580 Dr. Expenses(paid from JO cash) Difficult 240 Unsold inventory taken Difficult 60 The contractual arrangement stipulates that Difficult, the appointed manager, is entitled to a salary of P6 and a bonus of 15% of profit after salary and bonus. Any balance of profit or loss is shared equally. How much were the sales of the joint operation? How much was Difficult's net share in the cash settlement?

Answer rating: 100% (QA)

Lets proceed with the calculations Calculate the total profit after deducting Difficults salary and ... View the full answer