QUESTION 1

QUESTION 2

PLEASE PRESENT IN GOOD ACCOUNTING FORM

The following are the transactions of a joint operation formed by A, B and C during a year: A contributed cash of P400 and merchandise costing P800. B contributed merchandise costing P1,600. Freight-in paid by B is P80. Cmade purchases amounting to P400 using the cash contributed by A. Cpaid expenses of P800 using its own cash. Cmade total sales of P3,200. All the merchandise was sold except one-half of those contributed by B. Cis appointed as the manager of the joint operation. As compensation, C is entitled to a P120 salary plus bonus of 25% on profit after salary and bonus. Interest of 10% per annum is allowed to A and B's capital contributions. Cis charged for the cost of any unsold inventory. Profit or loss after necessary adjustments shall be divided equally. How much is the profit or loss after salaries but before bonus of the joint operation? On January 1, 20x1, A and B decided to liquidate their partnership. As of this date, their capital balances were P400,000 and P800,000, respectively. The partners share profits and losses on a 60:40 ratio. Before liquidation, the partnership had P80,000 cash and P120,000 liabilities. The partnership incurred loss of P480,000 on the sale of non-cash assets. A is solvent but Bis insolvent How much was the net proceeds from the sale of non-cash assets