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	$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

2. 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.

3. Liquidation costs were $98 800.

4. 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.