10 points Q.1. Briaxel Ltd is taking all the assets of Axel and Brian a sole traders for the following values. The new company will assume responsibility for payment of current liabilities. Axel: Premises -$100 000 Machinery-$20 000 Vehicles - $10 000 Inventory - $ 7000 Trade receivables - $5000 Brian: Premises -$90 000 Machinery-$20 000 Vehicles - $10 000 Inventory - $ 8000 Trade .receivables - $7000 Sole traders, Axel and Brian, decide to form a limited company, Briaxel Ltd, that will incorporate both businesses. The company will commence trading on 1 February 2015 and will have an issued share capital of 400000 ordinary shares of $1 each to be issued at par; the shares will be divided equally between the two men. Statements of financial position for the two businesses at 31 January 2015 are shown: Statements of financial position at 31 January 2015 Axel Brian $ $ ASSETS Non-current assets Premises 60 000 80 000 Machinery 40000 50 000 Vehicles 12000 10000 112000 140 000 Current assets Inventory 8000 9000 Trade receivables 6000 7500 Cash 2000 1 500 16000 18000 Total assets 128 000 158 000 124000 153000 CAPITAL AND LIABILITIES Capital - Axel Brian Current liabilities Trade payables Total capital and liabilities Files submitted: 4000 128 000 5000 158 000