WITHOUT SEPARATE BOOK WITH SEPARATE BOOK

TRANSACTIONS A B C A B C Separate book

Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr
a. A transfers JO-105 JO-105 JO-105 JO-105 Invty-105
inventory,
costing P100, to Invty- Payable Payable Invty- A, cap.-
B (manager). A 100 to A-105 to A-105 100 105
pays freight of Cash-5 Cash-5
P5.
b. C transfers JO-200 JO-Cash- JO-200 JO-200 Cash-200
cash of P2,000 to 200
B. Payable Payable Cash- Cash- C, cap.-
to C-200 to C-200 200 200 200
c. B purchases JO-50 JO-250 JO-50 JO-50 Purchases-
inventory costing 250
P250. Of that Payable JO-Cash- Payable A/P-50 Cash-
amount, P50 are to B-50 200 to B-50 200
on account of B. A/P-50 B, cap.-
50
d. B makes cash Rec. JO-Cash- Rec. Cash-800
sales of P800. from B- 800 from B-
800 800
JO-800 JO-800 JO-800 Sales-
800
e. B pays JO-55 JO-55 JO-55 JO-55 Expenses-
operating 55
expenses of P55 Payable Cash-55 Payable Cash-55 B, cap.-
using his own to B-55 to B-55 55
cash
JOINT OPERATION
Profit or loss:
Ending inventory is P30. How much is the P/L?

Joint Operation
Merch. Contribution of A
105 800 Sales and other income
Purchases (including B’s contri) 30 Unsold merchandise
250
Expenses
55
420 Credit balance - profit

Cash settlement:
The joint operation is liquidated. The cost of unsold inventory is charged to C. How much are the cash settlements to the joint operators?

JO-A
(a) 105
P/L 140
Receipt 245

JO-B
(c) 50
(e) 55
P/L 140
Receipt 245

JO-C
(b) 200
P/L 140 30 EI
Receipt JO-Cash
310
(c) Cash receipt from C 200 200 (d) Cash purchases
(e) Cash sale 800 245 Payment to A
310 Payment to C
245 Balance: Net Receipt of B