A 50:50 Joint Operation Was Commenced Between Two Participants

question 12

Multiple Choice

A 50:50 joint operation was commenced between two participants. Ronan Ltd contributed cash of $100 000, and Keating Ltd contributed a Building with a fair value of $100 000
And a carrying amount of $80 000. Using the line-by-line method of accounting, Keating Ltd would record which of the following entries?

• A) DR Building in JO $80 000 CR Building $80 000
• B) DR Building in JO $100 000 CR Building $80 000
• CR Gain on sale of building $20 000
• C) DR Investment in joint operation $100 000 CR Building $80 000
• CR Gain on sale of building $20 000
• D) DR Cash in JO $50 000 DR Building in JO $50 000
• CR Building $80 000
• CR Gain on sale of building $20 000

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Definitions:

Campus/Program Supervisor

An individual responsible for overseeing the day-to-day administrative and operational functions of a specific program or campus.

Field Instructor

A professional responsible for supervising and mentoring students in practical, real-world training environments, often in social services or education.

Developmental Stages

The distinct phases of growth or development that an individual or entity undergoes, typically following a sequential order.

Transfer Of Responsibilities

The process of shifting duties and obligations from one individual or group to another.