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MOUNTAIN VIEW COLLEGE
SCHOOL OF BUSINESS AND ACCOUNTANCY
ACCOUNTING FOR SPECIAL TRANSACTIONS
WORKSHEET#6: JOINT ARRANGEMENTS
INSTRUCTIONS: Answers and all necessary solutions to the requirements must be written in a clean
sheet of paper (all in good form). Submission format must be image file (png or
jpeg).
PROBLEM #1
Tom and Jerry are joint operators sharing profits and losses equally. The parties appoint Jerry as the
custodian of the joint operation's assets. The joint operation's transactions during the year are as follows:
a. Jerry transfers inventory costing P400 to the joint operation.
b. Tom contributes cash of P500 to the joint operation, subject to liquidation by Jerry.
c. Jerry purchases additional inventory of P200 using the joint operation's cash.
d. Jerry sells inventory costing P900 cash.
e. Jerry pays expenses of P100 using the joint operation's funds.
f. Unsold inventory at year-end amounts to P100.
Required:
