(a)[2]
State two reasons why a business may take over another business.
(b)[4]
Prepare the realisation account as at 1 January 2023.
(c)[10]
Prepare, on page 10, the partners’ capital accounts at 1 January 2023 so that the partnership books of account are closed.
(d)[4]
Prepare journal entries in the books of X Limited to show the acquisition of the partnership. Narratives are not needed.
(e)[5]
Advise Alice whether she should, or should not, set up this new business. Justify your answer.