Record the general journal entries, including cash, in the books of Woods Industries Ltd to record:

a)     The purchases of the business (entries to comply with AASB3 Business Combinations); 

b)    The settlement of the purchase consideration.

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The trial balance of the partnership of Woods Brothers trading as Woods Hardware as at 21 June 2018 disclosed: Inventory $145,000 Accounts receivable 225,000 Land at cost 50,000 Buildings at cost 80,000 Accumulated depreciation -buildings $ 20,000 Fittings and equipment 60,000 Accumulated depreciation -fittings and equipment 25,000 Motor vehicles 40,000 Accumulated depreciation - motor vehicles 24,000 Accounts payable 181,000 Bank overdraft 100,000 Capital - John Woods 125,000 Capital - Thomas Woods 125,000 600,000 600,000 At that date Woods Industries Ltd was incorporated to acquire Woods Hardware as a going concern for a purchase consideration of $500,000. The purchase consideration was settled by the issue of fully paid ordinary shares. The fair value of the assets acquired is: Land $ 300,000 Buildings Fittings and equipment Motor vehicles Inventory 170,000 NIL 5,000 100,000 200,000 Accounts receivable The trial balance of the partnership of Woods Brothers trading as Woods Hardware as at 21 June 2018 disclosed: Inventory $145,000 Accounts receivable 225,000 Land at cost 50,000 Buildings at cost 80,000 Accumulated depreciation -buildings $ 20,000 Fittings and equipment 60,000 Accumulated depreciation -fittings and equipment 25,000 Motor vehicles 40,000 Accumulated depreciation - motor vehicles 24,000 Accounts payable 181,000 Bank overdraft 100,000 Capital - John Woods 125,000 Capital - Thomas Woods 125,000 600,000 600,000 At that date Woods Industries Ltd was incorporated to acquire Woods Hardware as a going concern for a purchase consideration of $500,000. The purchase consideration was settled by the issue of fully paid ordinary shares. The fair value of the assets acquired is: Land $ 300,000 Buildings Fittings and equipment Motor vehicles Inventory 170,000 NIL 5,000 100,000 200,000 Accounts receivable

Answer rating: 100% (QA)

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