Spaid and Shuvell are partners in a business and their Balance Sheet at 31 December 2004 is as follows.

The partners have accepted an offer from Digger Ltd to purchase the business for $118 000. The company will take over all the assets and liabilities of the partnership except the bank account. The partnership assets are to be valued as follows.

Digger Ltd will settle the purchase price as follows: 

1. A payment of cash, $28.000 
2. An 8% debenture issued to Spaid to ensure that he continues to receive the same amount of interest annually as he has received from the partnership
3. The balance to be settled by an issue of ordinary shares of $1 in Digger Ltd at $1.25 per share. 

Digger Ltd's Balance Sheet at 31 December 2004 is as follows.

Required

Prepare Digger Ltd's Balance Sheet immediately after the company has acquired the partnership business.

Transcribed Image Text:

Fixed assets Land and buildings Fixtures and fittings office machinery Current assets Stock mal Debtors Bank Current liabilities Creditors Long-term liability Loan from Spaid at 10% per annum Capitals nh6q6 to 925rbiug 1160 วายริ 229nizud Spaid Shuvell 17 000 8. 000 4.000 29 000 ECOND 12 000 50 000 18 000 12 000 80 000 17 000 97 000 12 000 85 000 50 000 35 000 85 000