7.10 You are the finance director of Gripweed Ltd an Australian company listed on the ASX. The company is an importer of goods from overseas markets. The company's financial year ends on 30 June 2017. The company entered the following transactions during the year.

(a)Gripweed purchased inventories from a Hong Kong supplier for HK$300000. The title to the goods passes to the company on delivery. The payment for the inventories is due in equal instalments. The following exchange rates are applicable:

22 April 2017

Date of order for inventory

A$1 = HK$8.00

30 April 2017

Date of delivery for inventory

A$1 = HK$8.50

31 May 2017

1st payment of HK$100000

A$1 = HK$8.56

30 June 2017

2nd payment of HK$100000

A$1 = HK$8.59

31 July 2017

3rd payment of HK$100000

A$1 = HK$8.94

(b)Gripweed purchased land in Japan on 1 July 2016for 50000000. The land is subsequently revalued on 30 June 2017 to its fair value of 80000000. The following exchange rates are applicable:

1 July 2016

Date of acquisition of land

A$1 = 160

30 June 2017

Date of revaluation of land

A$1 = 245

Required

In accordance with AASB 121, prepare the entries of Fire Would to account for its foreign currency transactions

16.9 A court order for the winding up of Slater Ltd was made on 31 March 2017. A statement of financial position prepared on that date was as follows:

SLATER LTD

Statement of Financial Position

as at 31 March 2017

Current assets

Cash at bank

Cash in hand

Accounts receivable

Inventories

$4000

300

46500

49500

Total current assets

$100300

Non-current assets

Plant and equipment (at cost less depreciation)

Land and buildings (at cost)

Goodwill

Total non-current assets

Total assets

96200

30000

39500

165700

266000

Current liabilities

Accounts payable

PAYG tax instalments

Accrued expenses

Total current liabilities

29300

5700

5000

40000

Non-current liabilities

2000 $20 10% debentures

11% mortgage on land and buildings

Total non-current liabilities

Total liabilities

40000

20000

60000

100000

Net assets

$166000

Share capital

20000 7% cumulative preference shares issued for $2, called to $1.50 each

100000 ordinary shares issued for $2, called to $1.50 each

Less: Calls in arrears: 2000 ordinary shares at 50c

$30000

150000

$180000

(1000)

179000

Reserves

Retained earnings

(13000)

Total equity

$166000

Note: Arrears of preference dividends $4200.

Additional information

(a) Accrued expenses include:

Interest on mortgage

Interest on debentures

Salary (four employees, $800 each)

$1000

800

3200

(b) Assets are expected to realise:

Accounts receivable

Inventories

Plant and equipment

Unpaid calls

$16400

10500

30000

500

(1000 at 50c)

(c) The mortgage holder took possession of the land and buildings and sold them for $60000, paying any residue to the liquidator.

(d) The debentures are secured by a circulating security interest over the assets of Slater Ltd.

(e) On 1 May 2017, the liquidator realised the assets in (b) for the above amounts. The balance of the unpaid calls was treated as irrecoverable and the shares were forfeited.

(f)On 1 June 2017 the liquidator paid all liabilities and adjusted the rights of shareholders. The constitution, regarding rights of shareholders in a winding up, gives preference shareholders a right to receive arrears of dividend.

(g) Uncalled capital (where required to be called up) proved to be recoverable.

(h) The winding up of the company was completed on 1 July 2017, costs of liquidation being $3000.

Required

A. Prepare the Liquidation account and the Shareholders' Distribution account (show clearly any working in relation to final distribution to shareholders).

B.Prepare the liquidator's statement of receipts and payments.