Brian Ltd went into liquidation on 1 July 2019. The directors presented the following statement of financial position to the liquidator: $ 5,500,500 7,100,000 12,600,500 Brian Ltd Statement of Financial Position as at 30 June 2019 Assets $ $ Current assets Accounting receivable 5,000,000 Inventory 500,500 Non-current assets Land and buildings 5,120,000 Furniture and fittings 2,400,000 Accumulated depreciation (420,000) 1,980,000 Total Assets Liabilities Current liabilities Accrued expenses 75,200 Overdraft 57,000 Trade creditors 180,000 Non-current liabilities Debentures 500,000 Total liabilities Net assets Shareholders' equity 600,000 preference shares of $1 each fully paid 600,000 10,000,000 'A' ordinary $1 shares paid to $0.75 7,500,000 Calls in arrears (50,000 at $0.25) (12,500) 1,000,000 'B' ordinary $2 shares paid to $1 each 1,000,000 Revaluation surplus 4,600,000 Accumulated losses (1,899,200) Total shareholders' equity 312,200 812,200 11,788,300 7,487,500 11,788,300 Additional Information (a) Proceeds from the sale of assets achieved and collections made by the liquidator are as follows: $ Accounts receivable 2,500,000 Inventory 500,000 Land and buildings 4,200,000 Furniture and fittings 1,250,000 Calls in arrears 11,500 (b) The liquidator conducted a review of the Statement of Financial Position submitted by the directors and performed a review of proof of debts. The liquidator has identified and accepted additional liabilities and changes to some of the other liabilities as follows: $ Interest on overdraft 1,250 Trade creditors 160,000 Accrued expenses 80,000 Interest on debentures 138,800 There was no change made to the overdraft balance or the debenture face value due to debenture holders. The overdraft and related interest is secured against the accounts receivable balance whilst the debentures and related interest are secured against the land and buildings. There were no employee entitlements outstanding at the date of liquidation. (c) Liquidator's expenses and fees amounted to $350,000. (d) Upon review of the constitution of Brian Ltd, the liquidator has identified that preference shares have preference as to dividends and repayment of capital. All 'A' and 'B' class ordinary shares rank equally. Requirements (1) Prepare the receipts and payments account, liquidation account and members' distribution account in columnar format. (2) Complete the member's distribution schedule identifying how each class of share may share in any cash available after settlement of all creditors. If a call is required to be made against shareholders you are to assume this will be collected, in full, by the liquidator. Correct payment order in the liquidation account will be awarded marks. Round all numbers to whole numbers
