Tubular Ltd and Bells Ltd enter into a contractual agreement to form a jointly controlled operation on 1 July 2004.Tubular Ltd is to contribute land and production buildings and equipment.Bells Ltd agrees to contribute $5 million in cash.It is agreed that they will share output,assets and future contributions in the ratio 60:40 (Tubular:Bells).The following information relates to the contribution by Tubular Ltd. What are the entries to record the formation of the jointly controlled operation in the books of Tubular Ltd and Bells Ltd?
E) None of the given answers.

Question

Tubular Ltd and Bells Ltd enter into a contractual agreement to form a jointly controlled operation on 1 July 2004.Tubular Ltd is to contribute land and production buildings and equipment.Bells Ltd agrees to contribute $5 million in cash.It is agreed that they will share output,assets and future contributions in the ratio 60:40 (Tubular:Bells).The following information relates to the contribution by Tubular Ltd.  What are the entries to record the formation of the jointly controlled operation in the books of Tubular Ltd and Bells Ltd?
E) None of the given answers.

Quizplus · Accepted Answer

The Answer of Tubular Ltd and Bells Ltd enter into a contractual agreement to form a jointly controlled operation on 1 July 2004.Tubular Ltd is to contribute land and production buildings and equipment.Bells Ltd agrees to contribute $5 million in cash.It is agreed that they will share output,assets and future contributions in the ratio 60:40 (Tubular:Bells).The following information relates to the contribution by Tubular Ltd.  What are the entries to record the formation of the jointly controlled operation in the books of Tubular Ltd and Bells Ltd?
E) None of the given answers.

Tubular Ltd and Bells Ltd Enter into a Contractual Agreement