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

company, Jethro Ltd$,$ taking over all assets and liabilities as at $1$ June $2022.$

The price agreed on was $$100000,$$$50000$ was payable in cash and the balance by the issue

to the selling company of $20000$ fully paid shares in Oxley Ltd$,$ these shares having a fair value

of $$2\mathrm{.}50$ per share.

The trial balances of the two companies as at $1$ June $2022$ were as follows.

All the identifiable net assets of Jethro Ltd were recorded by Jethro Ltd at fair value except for

the inventories, which were considered to be worth $$25000($assume no tax effect$).$ The plant

had an expected remaining life of $5$ years.

The business combination was completed at $1$ June $2022$ and Jethro Ltd went into liquidation.

Oxley Ltd incurred incidental costs of $$2500$ in relation to the acquisition. Costs of issuing

shares in Oxley Ltd were $$5000.$

Required

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

combination.

Show the statement of financial position of Oxley Ltd after completion of the business

combination.