On 1 July 2020, Canberra Ltd enters into a joint operation with New South Wales Ltd to form an unincorporated entity to produce a new type of building product. All the current and future contributions are to be based on a 50:50 split, as are the future distributions of outputs.

Canberra Ltd's initial contribution consists of $4,000,000 cash and New South Wales Ltd contributes machinery that is recorded at $3,800,000. The fair value of machinery is

$4,000,000. During the first year of operation both parties contributed a further $6,000,000 cash.

Required:

Provide the journal entries in the book of Canberra Ltd and in the book of New South Wales Ltd to account for the joint operators' contributions to the joint operation.