Hammer Bhd was registered with ordinary shares to take over the business of Nuts and Bolts from 1 January x2. Mr Nuts and Mr Bolts are the major shareholders of the new company. They subscribed for 2 million ordinary shares each in Hammer Sdn Bhd, payable immediately in cash. The shares are valued at RM1 per share. The sale and purchase agreement states that: - The new company is to take over all the non-current assets and inventories of the partnership. - The assets are to be taken over at the following values: Additional information: a. Nuts and Bolt was given a special licence free of charge to maintain street lights by the government. This was not recognised as an asset by Nuts and Bolts. Its fair value was RM50,000,000. b. The new company made an issuance of 700 million fully paid ordinary shares at RM1 per share to the partnership as purchase consideration. c. The new company will assist the partnership to collect unpaid debts and pay the creditors. d. Bad debts of RM4,000,000 were incurred on trade receivables. e. Mr Nuts and Mr Bolts will share profits and losses equally and have agreed that any cash remaining on liquidation of their partnership should be distributed between them according to the ratio of their last agreed capital. Required: i. Prepare the journal entries to close the books of the partnership. ii. Prepare ledger accounts to open the, books of the new company. Hammer Bhd was registered with ordinary shares to take over the business of Nuts and Bolts from 1 January x2. Mr Nuts and Mr Bolts are the major shareholders of the new company. They subscribed for 2 million ordinary shares each in Hammer Sdn Bhd, payable immediately in cash. The shares are valued at RM1 per share. The sale and purchase agreement states that: - The new company is to take over all the non-current assets and inventories of the partnership. - The assets are to be taken over at the following values: Additional information: a. Nuts and Bolt was given a special licence free of charge to maintain street lights by the government. This was not recognised as an asset by Nuts and Bolts. Its fair value was RM50,000,000. b. The new company made an issuance of 700 million fully paid ordinary shares at RM1 per share to the partnership as purchase consideration. c. The new company will assist the partnership to collect unpaid debts and pay the creditors. d. Bad debts of RM4,000,000 were incurred on trade receivables. e. Mr Nuts and Mr Bolts will share profits and losses equally and have agreed that any cash remaining on liquidation of their partnership should be distributed between them according to the ratio of their last agreed capital. Required: i. Prepare the journal entries to close the books of the partnership. ii. Prepare ledger accounts to open the, books of the new company