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Kelly Mills Ltd was wound up on 22 nd August 2020. Kelly Mills Ltd Trial Balance as at 22 nd August 2020 Debit Credit Cash

Kelly Mills Ltd was wound up on 22nd August 2020.

Kelly Mills Ltd

Trial Balance

as at 22nd August 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

  1. The assets were sold and realised the following cash amounts:

Inventories $624 000

Plant and machinery $728 000

  1. The Alliance Bank took possession of the land and buildings, sold them for $468 000 and after the debt was cleared paid any excess funds to the liquidator.
  2. Liquidation costs were $98 800.
  3. 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.

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