A Joint Operation Holds Equipment with a Carrying Amount of £1

question 4

Short Answer

A joint operation holds Equipment with a carrying amount of £1 200 000. The two joint operators participating in this arrangement share control equally. They also depreciate Equipment using the straight-line method. The Equipment has a useful life of 5 years. At reporting date each joint operator must recognise the following entry, in relation to depreciation, in its records:
a. $\quad$ DR $\quad$ Depreciation $\quad$$\quad £ 240000$ ;
b. $\quad$ DR $\quad$ Depreciation $\quad$$\quad$$£ 120000$ ;
c. $\quad$ DR $\quad$ Investment in joint operation $\quad$$£ 240000$ ;
d. $\quad$ DR $\quad$ Assets in joint operation $\quad$$\quad £ 120000$ .

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Definitions:

Enlightenment Thinking

A philosophical movement of the 17th and 18th centuries emphasizing reason, individualism, and skepticism of traditional doctrines, leading to advances in science, politics, and human rights.

Conservative Reaction

A response, typically by right-leaning groups, towards preserving traditional values and resisting changes to social or political structures.

Revolution

A fundamental and rapid change in political power or organizational structures that occurs when the population revolts against current authorities, often leading to significant social transformation.

Charles de Montesquieu

was an 18th-century French philosopher known for his theory of the separation of powers, which informs much of modern democratic government structure.