above. Prior to the acquisition it is agreed that the following values will be placed on the assets of Company B:

Motor vehicles 6,000 Office equipment 4,000 Computer equipment 8,000 Stock 2,000 Debtors 2,100 Company A agrees to acquire the assets (excluding bank account) of Company B for a purchase price of £46,000. The consideration is to be satisfied by the issue of 20,000 £1 ordinary shares at a premium of 50p each and a payment in cash of the balance.

You are required to prepare the balance sheet of Company A after the acquisition.