Three Joint Operators Agree to an Arrangement in Which They

Three joint operators agree to an arrangement in which they have an equal share in an agricultural joint operation. The work undertaken in setting up the joint operation cost £300 000 and each operator contributed in cash. Each operator will need to recognise the following accounting entry:

A) $\begin{array} { l c c c } \text { DR } & \text { Cost of joint operation product } & £ 300,000 & \\\text { CR } & \text { Cash } & £ 300,000\end{array}$
B) $\text { DR \quad Inventory in JO } \quad £ 100,000$
$\text { CR \quad Cash } \quad\quad\quad £ 100,000$
C) $\begin{array} { l r r r } \text { DR } & \text { Cash in JO } & £ 300,000 & \\\text { CR } & \text { Cash } & & £ 300,000\end{array}$
D) $\begin{array} { l r r r } \text { DR } & \text { Cash in JO } & £ 100,000 & \\\text { CR } & \text { Cash } &£ 100,000\end{array}$

Correct Answer:

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