Ledger accounts, given a report as to affairs   LO9 Wasp Ltd went into liquidation on 31 March 2020. The report as to affairs prepared at that date is shown below. WASP LTD Report as to affairs as at 31 March 2020 Valuation Estimated realisable value (1) Assets not specifically charged: Calls in arrears (1000 ordinary shares at 25c) $ 250 $ 200 Cash on hand 50 50 Sundry debtors 24 400 18 100 Inventories 51 900 17 940 76 600 36 290 Estimated realisable value (2) Assets subject to specific charge Carrying amount Estimated realisable value Land $40 000 $40 900 Less: Mortgage and accrued interest 24 500 24 500 15 500 16 400 $92 100 $ 52 690 Total estimated realisable value $ 52 690 (3) Less: Preferential creditors entitled to priority over the holders of a floating charge (600) 52 090 (4) Less: Amount owing under floating charge — bank overdraft (19 440) 32 650 (5) Less: Other preferential claims (1 400) 31 250 (6) Less: Unsecured creditors — ordinary (13 450) Estimated surplus subject to liquidation expenses $ 17 800 Share capital Paid‐up capital: Issued preference shares: 42 000 shares fully paid at $1 $ 42 000 Issued ordinary shares: 60 000 shares called to 60c, issued for $1 36 000 Called capital 78 000 Calls on ordinary shares paid in advance: 4000 shares at 40c each 1 600 $ 79 600 Balance of retained earnings account, 31/3/20 $ 22 390Dr Except for the return of capital to shareholders, liquidation of the company was completed at 30 September 2020. The liquidator’s receipts and payments account for the 6 months ended 30 September 2020 is shown below. Liquidator’s receipts and payments Receipts Payments Cash in hand $ 50 Bank overdraft $19 440 Receivables 17 260 Liquidation expenses 1 130 Inventories 34 020 Liquidator’s remuneration 2 400 Land (net) 24 000 Preferential creditors 2 000 Calls in arrears 250 Unsecured creditors less discount 13 410 Surplus available to shareholders 37 200 $75 580 $75 580 The mortgage holder had taken possession of the land, sold it for $49 000, and paid the surplus to the liquidator after fully satisfying the mortgage claim. Preference shares are preferred to return of capital. All uncalled capital proved recoverable. Required Prepare the liquidation account and the shareholders’ distribution account as they will appear after repayment of capital.