Hamil Ltd purchased the business of Abdul, a sole trader, on 30 June 2004. The Balance Sheets of both businesses at that date were as follows.

It was agreed that Abdul's assets should be valued as follows.

Hamil Ltd did not acquire Abdul's bank account. The consideration for the sale was $120 000 and was satisfied by the payment to Abdul of $20 000 in cash and the issue to him of 80 000 ordinary shares in Hamil Ltd.

Required 

(a) Prepare the journal entries in Hamil Ltd's books to record the purchase of Abdul's business. 

(b) Prepare Hamil Ltd's Balance Sheet immediately after the acquisition of Abdul's business.

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Fixed assets Freehold property Plant and machinery Office equipment Office furniture Current assets Stock Debtors Bank Current liabilities Creditors Capital account $ 4 000 6.000 1 000 11 000 3.000 Abdul $ 40 000 15 000 7.000 62 000 8 000 70 000 70 000 $ 10 000 7.000 25 000 42 000 6 000 Hamil Ltd $ HID 100 000 60 000 14 000 174 000 36.000 210 000