A 60:40 Joint Operation Was Commenced Between Two Participants

A 60:40 joint operation was commenced between two participants. Andrews Limited contributed cash of $90 000, and Michaels Limited contributed a Building with a fair value of $60 000. Using the line-by-line method of accounting, Andrews Limited would record which of the following entries?

A) DR Building in JO $90 000 CR Cash $90 000
B) DR Cash in JO $90 000 CR Cash $90 000
C) DR Cash in JO $54 000 DR Building in JO $36 000
CR Cash $90 000
D) DR Investment in joint operation $90 000 CR Cash $90 000

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