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ABC Ltd went into liquidation. Its statement of financial position at the time of liquidation included: Assets 20,000, Liabilities 10,000, Share capital $15,000 and Retained

ABC Ltd went into liquidation. Its statement of financial position at the time of liquidation included: Assets 20,000, Liabilities 10,000, Share capital $15,000 and Retained earnings -$5000. Assets were sold for $18,500. Liabilities along with liquidator’s expenses of $500 were paid. Remaining funds were distributed to shareholders. Pass necessary journal entries.

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