Four Joint Operators Agree to an Arrangement in Which They

Four joint operators agree to an arrangement in which they have an equal share in a joint operation that produces sunflower oil. The work undertaken in setting up the joint operation cost $200 000 and each operator contributed in cash. Each operator will need to recognise the following accounting entry:

A) DR Cash in JO $50 000 CR Cash $50 000
B) DR Inventories in JO $50 000 CR Cash $50 000
C) DR Cash in JO $200 000 CR Cash $200 000
D) DR Cost of joint operation product $200 000 CR Cash $200 000

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