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Question 1: P Ltd acquired a 20% interest in J Ltd on incorporation for N$100 000. The contractual arrangements of P Ltd, together with other parties, exercises Joint control of the economic activities of J Ltd .Assets ,Liabilities and Since acquisition retained earnings of J Ltd are as follows: Property plant and equipment N$500 000, Inventory N$100 000, Long term loan N$75 000, Revenue N$250 000,Cost of sales N$120 000,Income tax expense N$65 000 and dividend paid N$ 40 000. Assuming the Joint arrangement is a Joint venture what is the correct journal entry to record the above transactions?
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