You bought the premises over from Yau Farin for $240,000 ? Yes.
Sometime subsequent to that you received an offer to purchase the premises?
Yes.
It
Yau Farin.
He came with
From whom? It came through the same man came to me. I know the offer to be genuine.
$10,000.00 cash and asked me to put it in my pocket, and sell the building for $240,000.00 so it was a genuine offer.
It is not peculiar, I understand, Rather a peculiar offer ? in Chinese business, But it was one to which I at once said "You are prepared to pay $250,000.00 I will put the offer to the directors".
It was a firm that wanted
On whose behalf was the offer ? to start a banking business and thought our premises would be very suitable for the purpose.
Do you know what the firm was ? were made for them to amalgamate.
I don't, but I know offers
It would be about March about When was this offer made ? a fortnight before writing up the books.
It was considered but it was
The offer was not accepted ? refused they thought they could get more.
WA
Judge:- Did you not want the premises to carry on your
- Myself I and the directors own banking business? Myself
were all agreeable that smaller premises were more suitable for our purpose they lost a good opportunity by being too greedy.
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Jan. 12th. It appears in your Journal NIB 15
- page 16 That shows the transaction - head office- A-1 Ledger. NIB 11 page 41 That is the writing up of the premises.
We wrote the premises at Vaults were kept separate ? $240,000.00
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Premises
<<
by $35,000.00
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So you have written up although the premises were never disposed of at that figure, and on the strength of that you carried $35,000 as a profit to your Profit and Loss Account ? prepared to justify that action.
Yes, and I am
Although the profit of $35,000.00, like the profit of $10,000 in connection with the deal with the Instone Trading
The two profits was never in effect realized by the Company ? are not parallel, but it is correct to say that there
there was no cash received, but was a profit on this
that is a profit. I will we had an appreciated building justify it if given opportunity,
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The point in respect of this $35,000.00
the appreciation
in value and also the $10,000.00 - the point of
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similarity I want to put to you is that no profit was in effect actually realised in respect of these two transactions? One is a debt that afterwards proved bad, and one is the appreciation of premises, at which price they cannot be sold now.
This profit was not in fact realised
?
To my mind, yes.
32.