Question: A 50:50 joint operation was commenced between Boss Ltd and Voss Ltd. Boss Ltd contributed cash of $50 000, and Voss Ltd contributed a Building

A 50:50 joint operation was commenced between Boss Ltd and Voss Ltd. Boss Ltd contributed cash of $50 000, and Voss Ltd contributed a Building with a fair value of $50 000 and a carrying amount of $40 000.

Required:

Prepare the appropriate general journal entry to recognize the contribution of buildings to the joint operation by Voss Ltd and the proportional interest in the cash contributed by Boss Ltd.

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