Kelly Mills Ltd was wound up on 22^ndAugust 2020.

Kelly Mills Ltd

Trial Balance

as at 22^ndAugust 2020

Debit

Credit

Cash

$46 800

Inventories

981 760

Plant and equipment

1 099 280

Land and buildings

312 000

Accumulated losses

420 160

Accounts payable

$832 000

Alliance Bank mortgage loan (secured on land and buildings)

208 000

Share capital: 1 820 000 ordinary shares issued for $1 each, fully paid

..

1 820 000

$2 860 000

$2 860 000

The following information is relevant

(a)The assets were sold and realised the following cash amounts:

Inventories$624 000

Plant and machinery$728 000

(b)The Alliance Bank took possession of the land and buildings, sold them for $468000 and after the debt was cleared paid any excess funds to the liquidator.

(c)Liquidation costs were $98 800.

(d)The liquidator paid all liabilities.

Required

Prepare the JOURNAL ENTRIES to wind up the affairs of Kelly Mills Ltd and to calculate any deficiency and distribution to the shareholders.

T accounts are NOT required.