The balance sheet of Hubble Ltd as at 31 May 2010 is shown below.

Hubble Ltd agreed to purchase at this date the freehold premises, plant and machinery and inventory of A Bubble at agreed valuations of £100,000; £10,000; and £55,000, respectively. The purchase price was to be settled fully by the issue to Bubble of 120,000 ordinary shares of £1 each in Hubble Ltd, and a cash payment to Bubble of £25,000. Bubble was to collect his debts and to pay his creditors.
Hubble Ltd sold one of its own premises prior to taking over Bubble for £75,000 (cost £55,000)
and revalued the remainder at £400,000 (excluding those acquired from Bubble).
You are required to:

(a) show the journal entries, including cash items, in the books of Hubble Ltd to give effect to the above transactions; and

(b) show the balance sheet of Hubble Ltd after completing them.

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Non-current assets Freehold premises at cost Plant and machinery at cost Less Depreciation 48,765 Motor vehicles at cost Less Depreciation 1,695 Current assets Inventory Accounts receivable Cash in hand Total assets Current liabilities Trade accounts payable Bank overdraft Net assets Hubble Ltd 375,000 101,235 6,775 483,010 102,550 96,340 105 198,995 682,005 63,200 38,175 101,375 580,630 650,000 400,000 180,630 580,630 Equity Authorised share capital 650,000 ordinary shares of 1 each Issued share capital 400,000 ordinary shares of 1 each fully paid Retained profits