On 23rd April 2021, the shareholders of Eliot Ltd voted to put the company into members' voluntary liquidation. After the liquidator had settled all the company debts and paid the liquidator's fees and expenses there was a cash balance of S304,200. The shareholders' equity is comprised of the following:
Share capital:
125,000 preference shares issued for S2 and fully paid
314,000 'A' ordinary shares issued for S2 and paid to 1.75
200,000 'B' ordinary shares issued for S2, and paid to $1.25
S 250,000
549,500
250.000
1,049,500
(632.000
S417,500
Retained earrings
Total equity
Eliot Ltd.'s constitution states that the preference shareholders have a prior claim to return of capital. All other shareholders are ranked equal based on the number of
shares held.
Required
Prepare a detailed explanation of the apportionment of any cash among the various classes of shareholders.