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Ledger accounts for liquidation

A court order for the winding-up of Slater Ltd was made on 31 March 2020. A statement of financial position prepared on that date was as follows:

SLATER LTD

Statement of Financial Position

as at 31 March 2020Current assets

Cash at bank$4,000

Cash in hand 300

Accounts receivable46,500

Inventories49,500

Total current assets$100,300

Non-current assets

Plant and equipment (at cost less depreciation) 96,200

Land and buildings (at cost) 30,000

Goodwill 39,500

Total non-current assets165,700

Total assets266,000

Current liabilities

Accounts payable 29,300

PAYG tax instalments 5,700

Accrued expenses 5,000

Total current liabilities40,000

Non-current liabilities

1000 $20 10% debentures 40,000

11% mortgage on land and buildings 20,000

Total non-current liabilities60,000

Total liabilities100,000

Net assets$166,000

Share capital

10,000 7% cumulative preference shares issued for $2,

called to $1.50 each $30,000

50,000 ordinary shares issued for $2, called to $1.50 each 150,000

$180,000

Less:Calls in arrears: 1000 ordinary shares at 50c(1,000)179,000

Reserves

Retained earnings(13,000)Total equity$166,000

Note:Arrears of preference dividends $2,100.

Additional information

a. Accrued expenses include:

Interest on mortgage$1,000

Interest on debentures480

Salary (four employees, $880 each) 3,520

b. Assets are expected to realise:

Accounts receivable$15,700

Inventories 10,500

Plant and equipment 30,000

Unpaid calls 500

(1000 at 50c)

c. The mortgage holder took possession of the land and buildings and sold them for $60,000, paying any residue to the liquidator.

d. The debentures are secured by a floating charge over the assets of Slater Ltd.

e. On 1 May 2020, the liquidator realised the assets in (b) for the above amounts. The balance of the unpaid calls was treated as irrecoverable.

f. On 1 June 2020 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 2020, costs of liquidation being $2,750.

A

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

(For multiple entries, enter items in descending order of amount. Round all amounts to the nearest whole dollar, unless otherwise indicated.)

Total national cash per share = (Round to 3 decimal places, the tolerance is +/- 0.001.)