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Ying Limited and Yang Limited Agreed to Form a Joint

Question 16

Multiple Choice

Ying Limited and Yang Limited agreed to form a joint operation to offer health services. To start the operation the joint operators agreed to contribute cash of $500 000 each. The joint operation will record which of the following entries to recognise this event?


A) DR Joint operator contributions $1 000 000 CR Cash $1 000 000
B) DR Cash $1 000 000 CR Joint operator revenue $1 000 000
C) DR Venturer's equity - Ying Limited $500 000 DR Venturer's equity - Yang Limited $500 000
CR Cash $1 000 000
D) DR Cash $1 000 000 CR Joint operation contribution - Ying $500 000
CR Joint operation contribution - Yang $500 000

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