Exercise 4 Dan Company, same transactions, but change amounts for some transactions:

1. Each operator contributed P300,000. and

3. Operating expenses paid, P125,000.
Change requirements:
a) In comparative format record in all book’s transactions 1 to 6 only
Books of Dan Books of Ed Books of Fe
Particulars Debit Credit Particulars Debit Credit Particular Debit Credit
1 Joint Operation- 900,000 Dan 900,000 Joint Operation 900,000
cash
Cash 300,000 Cash 300,000 Cash 300,000
Ed 300,000 Dan 300,000 Dan 300,000
Fe 300,000 Fe 300,000 Ed 300,000

2 Joint Operation 600,000 Joint Operation 600,000 Joint Operation 600,000

Joint 600,000 Dan 600,000 Dan 600,000
Operation
- Cash

3 Joint Operation 125,000 Joint Operation 125,000 Joint Operation 125,000

Joint 125,000 Dan 125,000 Dan 125,000
Operation
- Cash

4 Joint Operation - 700,000 Dan 700,000 Dan 700,000

Cash
Joint 700,000 Joint 700,000 Joint 700,000
Operation Operation Operation

6 Merchandise 120,000 Dan 120,000 Dan 120,000

Joint 120,000 Joint 120,000 Joint 120,000
Operation Operation Operation
 b) T account: Joint Operation, Joint Operation Cash, accounts of Ed and Fe in the books of Dan,
account of Dan in the books of Ed

Joint Operation
2 Merchandise 600,000 Sales 700,000 4
3 Operating Expenses 125,000 Merchandise Withdrawn 120,000 6

725,000 820,000
(725,000)
Balance 95,000

Joint Operation- Cash

1 Cash Contribution 900,000 Merchandise 600,000 2
Cash Sales 700,000
Operating Expenses 125,000
1,600,000 725,000
(725,000)
Balance 875,000

Books of Dan:

ED
Cash Contribution 300,000 1
Income 28,500
328,500

FE
Cash Contribution 300,000 1
Income 28,500
328,500

Books of Ed:

DAN
1 900,000 Cash Contribution 300,000 1
Cash Sales 700,000
6 Merchandise takeover 120,000 Purchase of Goods 600,000 2
Operating Expenses 125,000 3
38,000
1,720,000 1,063,000
(1,063,000)
Balance 657,000

c) Record in all books the last two transactions.

 Books of Dan Books of Ed Books of Fe
Particulars Debit Credit Particulars Debit Credit Particular Debit Credit
7 Joint Operation 95,000 Joint Operation 95,000 Joint Operation 95,000
Income 38,000 Income 28,500 Income 28,500
from Joint from Joint from Joint
Operation Operation Operation
Ed 28,500 Dan 38,000 Dan 38,000
Fe 28,500 Fe 28,500 Ed 28,500

8 Cash 218,000 Cash 328,500 Cash 328,500

Ed 328,500 Dan 328,500 Dan 328,500
Fe 328,500
Joint 875,000
Operation
- Cash

Dan Ed Fe
Investment 300,000 300,000 300,000
Expenses Paid 725,000
Profit Share 38,000 1,063,000 28,500 328,500 28,500 328,500

Cash Withheld 1,600,000

Merchandise 120,000 1,720,000
Withheld
Equity (657,000) 328,500 328,500
(Accountability)

Exercise 5 page 132. This is similar to Dan Company, but postings have already been made for the
transactions, only the last three entries are required.
 Books of N Books of O Books of P
Particulars Debit Credit Particulars Debit Credit Particulars Debit Credit
1 Merchandise 5,000 N 5,000 N 5,000
Joint 5,000 Joint 5,000 Joint 5,000
Operation Operation Operation

2 Loss 10,000 Loss 10,000 Loss 10,000

O 10,000 N 10,000 N 10,000
P 10,000 P 10,000 O 10,000
Joint 30,000 Joint 30,000 Joint 30,000
Operation Operation Operation

3 O 3,000 Cash 3,000 Accounts Receivable 5,000

Cash 3,000 N 3,000 Cash 10,000
O 3,000
N 3,000
Joint 10,000
Operation-
Cash
Joint 5,000
Operation
Accounts
Receivable