P and Q agree to combine their businesses on 1 July 2020 and trade as Kewpie Suppliers. The agreed values of P's delivery van is $10,000 and the agreed values of P's inventory is $18,500 and accounts receivable $2,500. The agreed value of Q's premises is $89,000 and inventory $11,000. The agreed values of their respective businesses are $30,000 (P) and $60,000 (0). This transaction is GST free. The Balance Sheets of their respective businesses are: Balance sheet as at 1 July 2020 Balance sheet as at 1 July 2020 Assets Delivery Van Inventory Accounts Receivable $ 8,000 10,000 Assets Premises Inventory Accounts Receivable 3,300 $ 56,000 12,000 5,000 Less Allow. for D. Debts Cash at Bank 300 3,000 4,000 25,000 Liabilities Accounts Payable 73,000 Liabilities Bank Overdraft 5,000 15,000 Mortgagli Net Assets Owner's Equity Capital P 5,000 20,000 20,000 Net Assets Owner's Equity Capital - Q 30,000 45,000 28,000 28,000 20,000 28,000 P and Q agree to combine their businesses on 1 July 2020 and trade as Kewpie Suppliers. The agreed values of P's delivery van is $10,000 and the agreed values of P's inventory is $18,500 and accounts receivable $2,500. The agreed value of Q's premises is $89,000 and inventory $11,000. The agreed values of their respective businesses are $30,000 (P) and $60,000 (0). This transaction is GST free. The Balance Sheets of their respective businesses are: Balance sheet as at 1 July 2020 Balance sheet as at 1 July 2020 Assets Delivery Van Inventory Accounts Receivable $ 8,000 10,000 Assets Premises Inventory Accounts Receivable 3,300 $ 56,000 12,000 5,000 Less Allow. for D. Debts Cash at Bank 300 3,000 4,000 25,000 Liabilities Accounts Payable 73,000 Liabilities Bank Overdraft 5,000 15,000 Mortgagli Net Assets Owner's Equity Capital P 5,000 20,000 20,000 Net Assets Owner's Equity Capital - Q 30,000 45,000 28,000 28,000 20,000 28,000