Illustration XI

Books of Alucard Books of Bane

A Joint Operation P100 Joint Operation
Inventory P100 Payable to Al
B Joint Operation P5 Joint Operation
Cash P5 Payable to Al
C Joint Operation P200 JO - Cash
Payable to C P200 Payable to C
D Joint Operation P50 Joint Operation
Payable to B P50 JO – Cash
Acc. Payable
E Receivable from B P800 JO – Cash
Joint Operation P800 Joint Operation
F Joint Operation P55 Joint Operation
Payable to B P55 Cash in Bank

Joint Operation
Merchandise Contribution 100 0
Purchases and Freight – In 5 0
Sales returns, discounts, and allowances 250 800
Expenses 55 30
420

Sales 800
Cost of Goods Sold
Inventory Beginning 100
Freight in 5
Purchases 250
Total Goods Available for Sale 355
Inventory Ending -30 -325
Gross Profit 475
Expenses -55
Profit for the Year 420

Books of Alucard Books of Bane

H1 Payable to C P30 Payable to C
Joint
Joint Operation P30
Operation
To charge the unsold inventory to C
Joint
H2 Joint Operation P420
Operation
Payable to B P140 Payable to A
Payable to C P140 Payable to C
JO Profit
JO Profit Share P140
Share
To Record share in profit and close the JO account in each operator’s
H3 Payable to B P245 Payable to A
 Payable to C P310 Payable to C
Cash P245* Cash
Rec. from B P800 JO – Cash
To Record Cash Settlement
Illustration XII
Books of Alucard Books of Bane
A Interest in JO P100
No Entry
Inventory P100
B Interest in JO P5
No Entry
Cash P5
C
No Entry No Entry

D Interest in JO
No Entry
Acc. Payable
E
No Entry No Entry

F Interest in JO
No Entry
Cash
Separate Books of the Joint Operation
A Inventory P100
Alucard Capital P100
B Freight in P5
Alucard Capital P5
C Cash P200
Clint Capital P200
D Purchases P250
Bane Capital P50
Cash P200
E Cash P800
Sales P800
F Expenses P55
Bane Capital P55

Sales 800
Cost of Goods Sold
Inventory Beginning 100
Freight in 5
Purchases 250
Total Goods Available for Sale 355
Inventory Ending -30 -325
Gross Profit 475
Expenses -55
Profit for the Year 420

Interest in Joint Operation

Merchandise Contribution 100 0
 Purchases and Freight – In 5 0
Sales returns, discounts, and allowances 250 800
Expenses 55 30
420

Books of Alucard Books of Bane

H1 Interest in JO P140 Interest in JO

Share in Profit P140 Share in Profit

H2
No Entry No Entry

H3 Cash P245 Cash

Interest in JO P245 Interest in JO

Separate Books of the Joint Operation

G Inventory Ending P30
Sales P800
Inventory Beginning P100
Freight In P5
Purchases P250
Expenses P55
Income Summary P420

H1 Income Summary P420

Alucard Capital P140
Bane Capital P140
Clint Capital P140

H2 Clint Capital P30

Inventory Ending P30

H3 Alucard Capital P245

Bane Capital P245
Clint Capital P310
Cash P770

Illustration XIII
NO

Illustration XIV
YES
Illustration XV
Initial Investment, January 01 500,000
Share in Profit 300,000
Share in OCI 60,000
Dividends -180,000

Investment in Joint Venture, December 31 680,000

Illustration XVI
Irithel Profit 1,000,000
Ownership interest 20%
Share in profit 200,000
Elimination of unrealized profit from
-42,000
downstream sale (100,000*60%*70%)
Adjusted share in profit of Joint Venture – 2019 158,000

Irithel Profit 1,200,000

Ownership interest 20%
Share in profit 240,000
Realized profit from downstream sale
42,000
(100,000*60%*70%)

Adjusted share in profit of Joint Venture – 2019 282,000

 Books of Bane Books of Clint
P100 Joint Operation P100
P100 Payable to Al P100
P5 Joint Operation P5
P5 Payable to Al P5
P200 Joint Operation P200
P200 Cash P200
P250 Joint Operation P50
P200 Payable to B P50
P50
P800 Receivable from B P800
P800 Joint Operation P800
P55 Joint Operation P55
P55 Payable to B P55

Merchandise Withdrawals
chase Returns, discounts, and allowances
Sales and Other income
Unsold Merchandise, if any
Credit Balance - Profit

Books of Bane Books of Clint

P30 Inventory P30

P30 Joint Operation P30

Receipt of inventory from JO

P420 Joint Operation P420

P140 Payable to A P140

P140 Payable to B P140

P140 JO Profit Share P140

he JO account in each operator’s books

P245 Payable to A P245
 P310 Payable to B P245
P245* Cash P310*
P800 Rec. from B P800
sh Settlement

Books of Bane Books of Clint

No Entry No Entry

No Entry No Entry

Interest in JO P200
No Entry
Cash P200

P50
No Entry
P50

No Entry No Entry

P55
No Entry
P55

peration
Merchandise Withdrawals
 chase Returns, discounts, and allowances
Sales and Other income
Unsold Merchandise, if any
Credit Balance - Profit

Books of Bane Books of Clint

P140 Interest in JO P140

P140 Share in Profit P140

Inventory P30
No Entry
Interest in JO P30

P245 Cash P310

P245 Interest in JO P310