Border Ltd$,$ a supplier of snooker equipment, agreed to acquire the business of a rival

company, Hometown Ltd$,$ taking over all assets and liabilities as at $1$ June $2023.$

The price agreed on was $$200000,$$$100000$ was payable in cash and the balance by the issue

to the selling company of $40000$ fully paid shares in Border Ltd$,$ these shares having a fair

value of $$5\mathrm{.}00$ per share.

The trial balances of the two companies as at $1$ June $2023$ were as follows.

All the identifiable net assets of Hometown Ltd were recorded by Hometown Ltd at fair value

except for the inventories, which were considered to be worth $$50000($assume no tax effect$).$

The plant had an expected remaining life of $10$ years.

The business combination was completed at $1$ June $2023$ and Hometown Ltd went into

liquidation. Border Ltd incurred incidental costs of $$5000$ in relation to the acquisition. Costs

of issuing shares in Border Ltd were $$10000.$

Required

Prepare the journal entries in the records of Border Ltd to record the business

combination.

Show the statement of financial position of Border Ltd after completion of the

business combination.