131
2.28
P.29
P.30
Head Office book and given this special heading in balance
sheet. As regarda cross entry in Hong Kong Office books it
is shown in Ex., Hong Kong branch balance sheet, as Head
Uffice loan. In making up final balance sheet title has been
changed and it is now in Ex.D made customer a deposits on
liability side. It must have been deliberately done.
Item Stocks Snares & Other Investments $484,831.80.
This includes 415 shares of $1,000 each in Inat one Trading Co.
to nominal value of 415,000; purchase price of goodwill of
bond selling business $66,793.60, and a small unknown asset
in Shokki of about $38. Purchase price of goodwill of bond
selling is in Ex.L f.29.
Stocks Shares & investments.
Goodwill cannot be described as
It should not be included under
this entry. If $55,000 was refunŭed correct amount for value
of goodwill would be $14,793.60.
Regarding 415,000 for snares in instone irading Co. Mrs.
Brewer was the holder of 4,800 shares in Instone Banking
Corporation, Nos.1 to 4,800. 4,500 of these shares were
transferred to Instone Trading Co. on 21.4.28. I found
nothing in books as to value of shares in Instone Trading Co.
If only assets of instone Trading Co. were 4,500 shares in
Instone Banking Corporation they would be worth nothing, as
insection of Ex.D show that assets of Instone Banking
Corporation were such that could only just pay their creditors
(1.e. not including shareholders). Their assets were 2-4
lakhs only. From inspection of Ex.D directors of Instone
Banking Corporation must have known that the 4,500 shares
were worth nothing and so shares of Instone Trading Co. were
also worth nothing. Entry in balance sheet Stocks Shares &
Other Investments is absolutely falso.
On 1.6.27 Mrs. Brewer was alloted 4,800 shares (see Ex.M) and
the cash book shows them as having been paid up to extent of
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