Journal entries and ledger accounts for liquidation   LO9 The trial balance of Grasshopper Ltd on 1 June 2020, the date on which the court ordered that the company be wound up, is presented below. GRASSHOPPER LTD Trial balance as at 1 June 2020 Debit Credit Cash $ 9 000 Inventories 188 800 Plant and machinery 211 400 Land and buildings 60 000 Retained earnings (accumulated losses) 80 800 Accounts payable $160 000 Mortgage (secured over land and buildings) 40 000 Share capital: 350 000 ordinary shares issued for $1 each, fully paid 350 000 $550 000 $550 000 Additional information

(a) The sale of assets realised the following amounts in cash. Inventories $120 000 Plant and machinery 140 000

(b) The mortgage holder took possession of the land and buildings and sold them for $90 000 and after settlement of the debt paid any excess funds to the liquidator.

(c) Liquidation costs amounted to $19 000.

(d) The liquidator paid all liabilities. Required 1. Prepare journal entries to wind up the affairs of Grasshopper Ltd. 2. Prepare the liquidation account, the liquidator’s receipts and payments account and the shareholders’ distribution account.