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

Question

Quizplus · Accepted Answer

The correct entry reflects the cash inflow (debit to Cash) and records the contributions from each joint operator (credits to their respective contribution accounts), accurately representing the transaction from the perspective of the joint operation.

Ying Limited and Yang Limited Agreed to Form a Joint