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How much is the net profit of the joint arrangement? D253 500

How much is the net profit of the joint arrangement? D253 500

Accounting Information Systems
Accounting Information Systems
11th Edition
ISBN:9781337552127
Author:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill
Publisher:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill
Chapter6: Relational Database And Sql
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Problem 8RQ
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as that evant activitic trol of the arrangemer angement might include clauses on arbitration. These provisions may allow for bsence of unanimous consent among the parties that The existence of such provisions does not prevent the from being jointly controlled and, consequently, from being de the scope of IFRS 11, an entity accounts ccordance with relevant IFRSS, such or IFRS 9. ment. CHAPTER 6: JO0INT ARRANGEMENTS 16. Berlin and Rio are participants in a joint arrangement for the purchase through bidding and sales of surplus auto parts from La Casa. The winning bid price of P400,000 was paid equally by Berlin and Rio, constituting their investments in joint arrangement. They agreed that each record his own purchases, sales, and expenses in his own books and share profit and losses equally. After seven months, the arrangement was terminated, and the following data is available: Berlin Joint arrangement account Expenses paid Inventory taken Rio Company Company 175,000 15,000 18,000 155,000 7.500 5,500 How much is the net profit of the joint arrangement? P353,500 b. Р335,500 c. P355,300 d. P305,350 a.
Transcribed Image Text:as that evant activitic trol of the arrangemer angement might include clauses on arbitration. These provisions may allow for bsence of unanimous consent among the parties that The existence of such provisions does not prevent the from being jointly controlled and, consequently, from being de the scope of IFRS 11, an entity accounts ccordance with relevant IFRSS, such or IFRS 9. ment. CHAPTER 6: JO0INT ARRANGEMENTS 16. Berlin and Rio are participants in a joint arrangement for the purchase through bidding and sales of surplus auto parts from La Casa. The winning bid price of P400,000 was paid equally by Berlin and Rio, constituting their investments in joint arrangement. They agreed that each record his own purchases, sales, and expenses in his own books and share profit and losses equally. After seven months, the arrangement was terminated, and the following data is available: Berlin Joint arrangement account Expenses paid Inventory taken Rio Company Company 175,000 15,000 18,000 155,000 7.500 5,500 How much is the net profit of the joint arrangement? P353,500 b. Р335,500 c. P355,300 d. P305,350 a.
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