(Do it Yourself – Straight Problems)

2. A, B, and C agreed to form a joint operation. Profit or loss of the joint operation shall be
divided equally. The following were the transactions during the year:
a. Inventory costing P 200 was sent by A to B.
b. Freight paid by A on the inventories sent to B amounted to P 10.
c. Cash of P 400 was sent by C to B to be used to purchased additional inventory.
d. B purchased additional inventory amounting to P500, P100 of which were made
on account of B.
e. Cash sales made by B amounted to P 1,600.
f. Operating expenses amounting to P110 were paid by B using his own cash.
g. Unsold inventory at year-end amounted to P 60.
h. The joint operation is liquidated and C is charged the unsold inventory at cost.

Requirements: Provide all the necessary journal entries assuming:

a. No separate books are maintained for the joint operations.