Zura Bhd. dan Lofa Bhd. are operated in the same kind of industries. Given below are the account balances of Lofa Bhd. and Zura Bhd. as at 31 December 2021. 1. Non-current Assets: Buildings Plant and machinery Goodwill Current Assets: Inventories Trade receivables Bank Zura Bhd. RM'000 Lofa Bhd. RM'000 630,000 412,000 340,000 172,000 50,000 140,000 112,000 60,000 176,000 140,000 1,220,000 1,012,000 TOTAL ASSETS Equities: Ordinary share capital 800,000 650,000 100,000 Preference share capital 200,000 Retained earnings 240,000 122,000 Non-current Liabilities: 7% Debentures 100,000 Liabilities: Trade payables Bank overdraft TOTAL EQUITIES AND LIABILITIES 60,000 40,000 20,000 1,220,000 1,012,000 An agreement was drawn up on 1 January 2022 for the acquisition of Zura Bhd. and Lofa Bhd. by a newly formed company CTZone Bhd. CTZone Bhd will acquire all the assets and liabilities of Lofa Bhd. Meanwhile for Zura Bhd., part of buildings with carrying amount of RM196,000 and bank overdraft will be excluded from the taking over. 2. The formation expenses of CTZone Bhd. is RM8,000. 3. The assets of Zura Bhd. and Lofa Bhd. will be taken over at the following values: Building Plant and machinery Inventories Zura Bhd. Lofa Bhd. RM RM 560,000 584,000 328,000 24,000 136,000 30,000 4. Provision for doubtful debts was estimated at 5% of the trade receivables of both companies. The purchase consideration payable to Zura Bhd. and Lofa Bhd are as follows: Stakeholders 5. 6. Consideration paid Zura Bhd. Lofa Bhd. RM RM Ordinary 500,000 fully paid ordinary 1,250,000 shareholders shares in CTZone Bhd. 400,000 fully paid ordinary 1,000,000 shares in CTZone Bhd. Preference 100,000 fully paid ordinary 250,000 shareholders shares in CTZone Bhd. 7% Debenture 8% Debenture 106,000 holders The ordinary share of CTZone Bhd. are valued at RM2.50 per share. The building which will not be taken over by CTZone Bhd. will be sold for RM320,000 cash. Part of the proceeds of this disposal is to settle the bank overdraft. 7. CTZone Bhd. also made a rights issue of 40,000 ordinary shares at a price of RM3 per share. All the shares were issued and fully paid up. 8. The liquidation expenses of Zura Bhd. and Lofa Bhd. were RM22,000 and RM12,000 respectively. You are required to: a. calculate the purchase price and goodwill if any. b. prepare the journal entries to close the books of Zura Bhd. C. prepare the Statement of Financial Position CTZone Bhd. immediately after the amalgamation