Bugs Ltd went into voluntary liquidation on 30 June 2020. Its summarised statement of financial position at that date is as follows:

Bugs Ltd Statement of Financial Position As at 30 June 2020
Equity		Current assets
Share capital	53 000	Cash	10 000
		Inventory	12 000	22 000
		Non-current assets
		Land		40 000
		Total assets		62 000
		Current liabilities
		Payables		9 000
Total equity	53 000	Net assets		53 000

All assets realised amounted to $55 000. Payables allowed a $500 discount. Costs of liquidation were $3 000.

Required

1. Complete the journal entries to liquidation. (15 marks)
2. Record the entries in the Liquidation account, the Liquidators receipts & payments, and the Shareholders distribution account. (9 marks)

Answer journal for question 4 part (i)

Use the worksheet below to show your adjusting consolidation journal entries at 30 June 2020, narrations are required: Add rows to the answer table if required.

Date	Account	Dr	Cr

Question 4 part (ii) is answered on the next page

Question 4: Insolvency continued (25 marks)

Answer ledger for question 4 part (ii) add rows to the ledgers if required.

Use the worksheet below to record the adjusting journal entries in the Liquidation account, the Liquidators receipts & payments, and the Shareholders distribution account:

Liquidators Receipts & Payments
Liquidation
Shareholders Distribution