A 50:50 Joint Operation Was Commenced Between Two Participants $\text { DR\quad Building in JO } \quad£ 50,000$

A 50:50 joint operation was commenced between two participants. Participant One contributed cash of £50 000, and Participant Two contributed a Building with a fair value of £50 000. Using the line-by-line method of accounting, participant One would record:

A) $\text { DR\quad Building in JO } \quad£ 50,000$
$\text { CR } \quad \text { Cash } \quad\quad\quad £ 50,000$

B) $\text { DR\quad Building in JO } \quad£ 50,000$
$\text { CR } \quad \text { Cash } \quad\quad\quad £ 50,000$ .

C) $\begin{array} { l c c c } \text { DR } & \text { Investment in joint operation } & £ 50,000 & \\\text { CR } & \text { Cash } & & £ 50,000\end{array}$

D)
$\begin{array} { l c l l } \text { DR } & \text { Cash in JO } & £ 25,000 & \\\text { DR } & \text { Building in JO } & £ 25,000 & \\\text { CR } & \text { Cash } & & £ 50,000\end{array}$

Correct Answer:

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