Provide the journal entries in the book of Canberra Ltd

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Question - On 1 July 2020, Canberra Ltd enters into a joint operation with New South Wales Ltd to form an unincorporated entity to produce a new type of building product. All the current and future contributions are to be based on a 50:50 split, as are the future distributions of outputs.

Canberra Ltd's initial contribution consists of $4,000,000 cash and New South Wales Ltd contributes machinery that is recorded at $3,800,?000. The fair value of machinery is $4,000,000. During the first year of operation both parties contributed a further $6,?000,?000 cash.

Required - Provide the journal entries in the book of Canberra Ltd and in the book of New South Wales Ltd to account for the joint operators' contributions to the joint operation.

Reference no: EM133017790

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