On 1 January 2012 Alpha Inc. and Beta PLC each acquired 35% & 25% of the equity

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Question:

On 1 January 2012 Alpha Inc. and Beta PLC each acquired 35% & 25% of the equity of Omega Agro processing Share Company for ETB 21,000,000 & ETB 15,000,000 respectively. Alpha and Beta have contractually agreed to have joint control over the strategic financial and operating decisions of Omega. Transaction costs of 1 per cent of the purchase price of the shares were incurred by Alpha and Beta. Omega harvests and also locally purchases orange & mango fruits and exports processed Juice of each to Juba & Djibouti. Omega has a mortgage bonds payable of large amount that is payable from its own operation.

On 31 December 2012 Omega declared a dividend of ETB 8,000,000 for the year ended 2012. The dividend declared by Omega was paid in 2013.

For the year ended 31 December 2012, Omega recognized a profit of ETB 18, 000,000. Assume both parties to the joint arrangement and OMEGA are using the same accounting policies as per IFRS. On the book of Alpha Incorporated, the recoverable amount of its investment in Omega asset, is worth of Br. 24,210,000 only.

Instruction:

Pass the necessary journal entries for Alpha Incorporated using the appropriate method of accounting prescribed for such type of joint arrangement.