136
P.39
2.40
capital I understand in capital daly applied for, application
money received and shares duly alloted,
difference from alloted capital.
There is no essential
Stocks shares & other investments, consist as to $415,000 in
fully paid up shares in Instone Trading Co., for those, fully
paid shares of Instone Banking Corporation were transferred
to Instone Trading Co. (This is the ultimate result, but the
books do not show the transaction). If entry had been 'Shares
•
of Instone Trading Co. at par I would not have agreed with
entry as auditor. Such an entry would have been false if
directors knew value was not worth par even if statement was
literally true. They should be put at their real value or
if put in at par a footnote addod as to their real value. I
do suggest that statement in balance sheet showing shares of
Instone Trading Co. at par value is false. Un books as they
were shares in Instone Trading Co. could be stated in balance
sheet at par and left at that in books, as long as it was
stated in balance sheet what true value was.
would be a false statement.
Otherwise it
Balance of item is $68.000 odd represents right to purchase
certain bondɛ. Goodwill is not an 'investment in meaning of
word here in order that balance sheet may show true state of
affairs. Goodwill is an investment in so far as any asset
of Co. is an investment. So far as books are concerned
firgure of 69,000 is correct. ▲ thing of this nature can
be described as an investment, but not in a balance sheet.
This item stands in books of Co. as investment and has been
placed to balance sheet. Mortgage & Long Term Loans. I do
not know about a mortgage loan on property in New Territory,
being granted sometime between 30.4.28 and June 1929 when Co.
went into liquidation. It is not included in this entry.
#266,630 is made up:-