A 60:40 Joint Operation Was Commenced Between Two Participants

question 11

Multiple Choice

A 60:40 joint operation was commenced between two participants. Andrews Limited contributed cash of $90 000, and Michaels Limited contributed a Building with a fair value of $60 000. Using the line-by-line method of accounting, Andrews Limited would record which of the following entries?

• A) DR Building in JO $90 000 CR Cash $90 000
• B) DR Cash in JO $90 000 CR Cash $90 000
• C) DR Cash in JO $54 000 DR Building in JO $36 000
• CR Cash $90 000
• D) DR Investment in joint operation $90 000 CR Cash $90 000

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Definitions:

Effective Leadership

Effective leadership is the ability to guide, inspire, and influence a group towards achieving goals and creating a vision for success.

Chromatics

The science of colors, including their properties, classifications, and the way they interact with light.

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Communication is the process of exchanging information, ideas, thoughts, and feelings through verbal or non-verbal means.

Operational Justice

Refers to the fairness in the processes and procedures that resolve disputes and allocate resources.