Question one : on the 1 July 2013, two companies agreed to form an unincorporated joint operation to design specialised tools, which is called SmartTools to be used in the making of high grade mining instruments. It was agreed that the relative joining operation would be: Company name Stafford Ltd Tutbury Ltd Interest 50% 50% The contributions of each company were as follow: Stafford Ltd provided plant to SmartTool with a carrying value of 1,800,000 and fair value of 2400,000, with an expected life of 10 years. Tutbury Ltd provided cash of 1600,000. Information from SmartTools financial statement as at 30 June, 2014 is as follows: Cash 95,000 Equipment 1200,000 Accumulated depreciation - equipment (120,000 Plant 1800,000 Accumulated depreciation - plant (200,000) Raw material 163,000 Work in process 160,000 Inventory 550,000 Total assets 3648,000 Account payable 100,000 Accruals expenses 248,000 740,000 Bank loan Total liabilities 1088,000 2560,000 Net assets 1990,000 Cost of inventory Required: Prepare the necessary entries at the beginning and the end of financial year at the books of the two companies. Date 1/07/2013 Stafford Ltd Tetbury 30/06/2014 30/06/2014 For accumulated depreciation