Reference no: EM132562658

Question 1: Ranto and Santo formed a joint operation to acquire and sell a special type of merchandise Ranto is to manage the operation and to furnish the capital. The participants are to share equally any gain or loss on the joint operation. On April 1, 2020, Santo sent Ranto P 10,000 cash, which was all used to purchase merchandise. Ranto paid freight of P 260 on the merchandise purchased. On April 27, one half of the merchandise was sold for P 7,200 cash. Ranto paid the cost of delivering merchandise to customers which amounted to P 240. No further transactions occurred until the end of the month. The profit (loss) of the operation for the month of April, 2011 is