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 2020 Current assets Cash at bank $ 4,000 Cash in hand 300 Accounts receivable 46,500 Inventories 49,500 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 assets 165,700 Total assets 266,000 Current liabilities Accounts payable 29,300 PAYG tax instalments 5,700 Accrued expenses 5,000 Total current liabilities 40,000 Non current liabilities 1000 $20 10 debentures 40,000 11 mortgage on land and buildings 20,000 Total non current liabilities 60,000 Total liabilities 100,000 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 debentures 430 Salary (four employees, $893 each) 3,570 b Assets are expected to realise Accounts receivable $ 16,000 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 $2,850 A Prepare the Liquidation account and the Shareholders Distribution account (show clearly any working in relation to final distribution to shareholders)

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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

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 2020
Current assets
Cash at bank	$ 4,000
Cash in hand	300
Accounts receivable	46,500
Inventories	49,500
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 assets		165,700
Total assets		266,000
Current liabilities
Accounts payable	29,300
PAYG tax instalments	5,700
Accrued expenses	5,000
Total current liabilities		40,000
Non-current liabilities
1000 $20 10% debentures	40,000
11% mortgage on land and buildings	20,000
Total non-current liabilities		60,000
Total liabilities		100,000
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 debentures	430
Salary (four employees, $893 each)	3,570

b. Assets are expected to realise:

Accounts receivable	$ 16,000
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 $2,850.

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