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Cash Contributed to a Joint Operation Was Used to Purchase

Question 3

Multiple Choice

Cash contributed to a joint operation was used to purchase Equipment (€100 000) and raw materials (€70 000) . The following entry would be part of the overall recording of these transactions:


A)  DR  Equipment €100000 DR  Raw materials €70000 CR  Cash €170000\begin{array} { l c l l } \text { DR } & \text { Equipment } & € 100000 & \\\text { DR } & \text { Raw materials } & € 70000 & \\\text { CR } & \text { Cash } & & € 170000\end{array}
B)  DR  Work in progress €170000 CR  Joint operation capital €170000\begin{array} { l r r r } \text { DR } & \text { Work in progress } & € 170000 & \\\text { CR } & \text { Joint operation capital } & & € 170000\end{array}
C)  DR Cash €170,000\text { DR \quad Cash } \quad\quad\quad\quad € 170,000
 CR  Contribution to joint operation €170,000\text { CR } \quad \text { Contribution to joint operation } \quad € 170,000
D)  DR  Cash €170,000 CR  Equipment €100,000 CR  Raw materials €70,000\begin{array}{lll}\text { DR } & \text { Cash }& € 170,000\\\text { CR } & \text { Equipment } & € 100,000 \\\text { CR } & \text { Raw materials } & € 70,000\end{array}

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