Illustration no. 1:
The Investment in joint operation accounts in the books of the joint
operators, P, Q, and R, show the balances below, upon termination of the
joint operation and distribution of the profits:
Accounts
with
P
Q
R
P
Dr (Cr)
P4,000
(P6,500)
Q
Dr (Cr)
P2,500
(P6,500)
R
Dr (Cr)
P2,500
P4,000
Final settlement of the joint operation will require payments as follows:
P pays P2,500 to R, and Q pays P4,000 to Z.
Solution:
Accounts
with
P
Q
R
Receivable
(Payable)
P
Dr (Cr)
P4,000
(P6,500)
Q
Dr (Cr)
P2,500
(P6,500)
R
Dr (Cr)
P2,500
P4,000
(P2,500)
(P4,000)
P6,500
Illustration no. 2:
Solution: