On 1 July 2022 Oiley Ltd enters into a joint arrangement with Goldey Ltd. Both parties commit themselves to a contractual arrangement in which Oiley Ltd contributes plant and machinery, and Goldey Ltd contributes cash of $8 million.

The machinery contributed by Oiley Ltd has a carrying amount of $6 million and a fair value of $8 million. All current and future contributions are to be based on a 50:50 split, as are the future distributions of output.

REQUIRED

Provide the journal entries to account for the joint operators’ contributions to the joint operation.