(a) The business of V. A. Fraga is taken over by T. Malloy in its entirety. The...

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(a) The business of V. A. Fraga is taken over by T. Malloy in its entirety. The assets are deemed to be worth the statement of financial position values as shown. The price paid by Malloy is £260,000. Show the opening statement of financial position of Malloy.

(b) Suppose instead that F. Templar had taken over Fraga’s business. He does not take over the bank balance, and values premises at £205,000 and inventory at £36,100. The price paid by him is also £260,000. Show the opening statement of financial position of Templar.

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Frank Woods Business Accounting

ISBN: 9780273759287

12th Edition

Authors: Frank Wood. Sangster, Alan

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