Scribd
Upload
3 views

script

The document outlines the process of maintaining separate records for joint operations, where each operator records only their own transactions. It details how to compute profit before and after management fees and bonuses, ultimately leading to the distribution of profits among joint operators. Additionally, it explains the cash settlements based on contributions and profit shares of the operators.

Uploaded by

jonarose.dologan
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
3 views

script

The document outlines the process of maintaining separate records for joint operations, where each operator records only their own transactions. It details how to compute profit before and after management fees and bonuses, ultimately leading to the distribution of profits among joint operators. Additionally, it explains the cash settlements based on contributions and profit shares of the operators.

Uploaded by

jonarose.dologan
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

This are the things that you need to know when separate records are manintained

When Separate records are maintained The joint operation transactions are recorded in those separate
books in the regular manner. In other words naa natay gitawag na joint operators books or Jos book

The joint operators record only their own transactions in their respective books. If the transaction is a
tranasaction one joiny operator then the other joint operators will not record the transaction

Personal accounts and JO-Cash or similar accounts are not used


A. This means there is a transeder of cash from small to the joint operation so only small and the
joint operation will record the transaction Since the cash will increase because of the transfer
 B. This transaction is between the medium and joint operation only. the inventory increases
because it is transfered in the joint operation that is why we debir the inventory.
 C. This transaction is between the large and joint operation will record the transaction

 Let compute first the profit before management fee and bonus
 Deduct ending inventory to compute for COGS. It is stated in the problem that all inventories
were sold except one third from largest purchases so lets add 160k purchaes and 20k prepaid
then multiply it to the 1/3 total of 60k and that is the ending.
 300k -60k equals 240k which us the COGS. 900K-240K that is equal to the gross profit of 660k
then deduct expenses amounting to 240k refer of transaction letter f 660k-240k equals to profit
before maanagemnt fee and bonus of 420k.

 Profit before managment fee and bonus is 420k and in the problem stated that large is entitled
to a management fee of 6k.
 420k-6k is equal to 414k profit after management fee but before bonus It is also stated in the
problem that is entitled to a bonus of 15%o of profit after management fee and bonus
 finally, we can compute for the profit after management fee and bonus The remaing profit is
360k and 420k-6k-54k=360k. It is statesbij the problem that any remaining profit or loss is
divided equally therfore lets divide 360k by 3.
 At this point we can now compute for the share of the share of the joint operators in the
profit.the share of small in tge profit is 120k.
 To compute for cash settlements to the joint operators lets use joint operators account if we use
the joint operator account we will just reflect the contrbutions of joint operators and their share
of their profit or losstl.
 The contribution od small is 100k and his share is 120k therefor small will receive 220k Large
was charged for the cost of unsold inventory, we should deduct the unsold inventory of 60k

You might also like