Prepare the journal entries in the records of Dave Ltd to account for the acquisition of Ten Ltd. and show all workings

The trial balance of Ten Ltd is as attached:

Dave Ltd acquired the business of Ten Ltd by taking over all assets as at 1 June 2023. All the identifiable net assets were recorded at fair value except inventories which were considered to be worth 28,000.

David Ltd paid $40,000 in cash and 20,000 fully paid ordinary shares of $2 each. These shares have a fair value of $2.50 per share on the date of acquisition. The cost of issuing shares in Dave Ltd were $250.

	Dr	Cr
Share capital		90,000
Retained earnings	24,000
Accounts payable		20,000
Plant (net)	30,000
Inventories	26,000
Accounts receivables	30,000