C Allen

(a) The business of Allen is taken over by S$ Walters in its entirety. The assets are deemed to be worth the balance sheet values as shown. The price paid by Walters is £40,000. Show the opening balance sheet of Walters.
(6) Suppose instead that R Jones had taken over Allen’s business. He does not take over the bank balance, and values premises at £28,000 and stock at £9,200. The price paid by him is £46,000.
Show the opening balance sheet of Jones.

Transcribed Image Text:

Fixed assets Premises Current assets Stock Debtors Bank Less: Current liabilities Creditors Capital Balance Sheet as at 31 December 20X8 4 9,600 6,300 21,000 1,700 17,600 ( 6,800) 10,800 31,800 31,800