Three Joint Operators Are Involved in a Joint Operation That

Three joint operators are involved in a joint operation that manufactures fishing boats. At the beginning of the year the joint operation held $45 000 in cash. During the year the joint operation incurred the following expenses: Wages paid $60 000, Overheads accrued $20 000. Additionally, creditors amounting to $45 000 were paid and the joint operators contributed $27 500 cash each to the joint operation. The balance of cash held by the joint operation at the end of the year is:

A) $2 500
B) $42 500
C) $25 000
D) $22 500

Correct Answer:

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