Sa, Nah, Pasa formed a joint operation. Sa is to act as managing joint operator and is designated to record the joint operation accounts in his books. As manager, he is allowed a salary of P12,000. Remaining profit (loss) is to be divided equally.The following balances appear at the end of 20x0 before adjustments for joint operation’s inventory and profits. Joint operations cash (dr), 51,000; Nah, capital (dr), 6,000; Pasa capital (cr), 30,000. The arrangement is to terminate on December 31, 2020 with unsold merchandise costing P13,000. Assuming that the joint operations loss is P1,000, what is the balance of the Joint Operation’s account before the distribution of profit?

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter11: Investor Losses
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Sa, Nah, Pasa formed a joint operation. Sa is to act as managing joint operator and is designated to record the joint operation accounts in his books. As manager, he is allowed a salary of P12,000. Remaining profit (loss) is to be divided equally.The following balances appear at the end of 20x0 before adjustments for joint operation’s inventory and profits. Joint operations cash (dr), 51,000; Nah, capital (dr), 6,000; Pasa capital (cr), 30,000. The arrangement is to terminate on December 31, 2020 with unsold merchandise costing P13,000. Assuming that the joint operations loss is P1,000, what is the balance of the Joint Operation’s account before the distribution of profit?

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