Prepare a report as to affairs for this information.
I only need confirmation that what I have done for the assets section is correct or false
ARCH LTD Trial Balance as at 30 June 2020 Debit Credit $ 100 000 70 000 $ 20 000 60 000 12 640 14 000 37 200 108 000 36 000 Share Capital - 100,000 A ordinary shares - fully paid Share Capital - 100,000 B ordinary shares issued for $1, called to 70c Calls in arrears - B ordinary Share Capital - 60,000 12% preference shares - fully paid Retained Earnings General Reserve Land Buildings Accumulated Depreciation - Buildings Plant and equipment Accumulated Depreciation - Plant and Equipment Cash at bank Accounts Receivable Inventory Bills Receivable Debentures (secured by circulating charge) Accounts Payable Income Tax Payable Mortgage on Land and Buildings 98 400 16 800 1 200 69 600 146 400 57 600 34 560 108 000 4 800 81 600 $538 400 $538_400 Other information: 1. There is an arrears of preference dividend of $13,600. The constitution gives preference shareholders priority of payment of arrears of preference dividends. However, all shares rank equally regarding retum of capital based on the number of shares held. 2. The liquidator discovered that: a. $3,800 worth of Accounts Payable had not been recorded. b. In total, the creditors were willing to give a discount of $2,500 upon settlement of the Accounts Payable. c. Salaries and wages totalling $2,300 had not been recorded. d. Accrued interest of $2,000 on the mortgage and $1,200 on the debentures had not been recorded. 3 3. At the commencement of the winding up the assets were expected to realise: a. Land and Buildings $ 95,000 b. Plant and equipment 58,000 c. Bills Receivable 40 000 d. Accounts Receivable 56 000 e. Inventory 112.000 f. Calls in arrears 16,000 Statement of affairs Valuation Estimated Realisable Values 1. Assets not specifically charged Calls in Arrears Inventory Accounts Receivable Bills Receivable 20,000 146,400 69,600 57,600 293,600 16,000 112,000 56,000 40,000 224,000 2. Assets subject to specific changes Book Value 109,200 -83,600 98,400 -16,800 25,600 Freehold Property Less Amounts owing Plant and Equipment Less Amounts owing Total Assets Total Estimated Realisable Values 11,400 81,600 400,800 41,200 276,600 276,600 ARCH LTD Trial Balance as at 30 June 2020 Debit Credit $ 100 000 70 000 $ 20 000 60 000 12 640 14 000 37 200 108 000 36 000 Share Capital - 100,000 A ordinary shares - fully paid Share Capital - 100,000 B ordinary shares issued for $1, called to 70c Calls in arrears - B ordinary Share Capital - 60,000 12% preference shares - fully paid Retained Earnings General Reserve Land Buildings Accumulated Depreciation - Buildings Plant and equipment Accumulated Depreciation - Plant and Equipment Cash at bank Accounts Receivable Inventory Bills Receivable Debentures (secured by circulating charge) Accounts Payable Income Tax Payable Mortgage on Land and Buildings 98 400 16 800 1 200 69 600 146 400 57 600 34 560 108 000 4 800 81 600 $538 400 $538_400 Other information: 1. There is an arrears of preference dividend of $13,600. The constitution gives preference shareholders priority of payment of arrears of preference dividends. However, all shares rank equally regarding retum of capital based on the number of shares held. 2. The liquidator discovered that: a. $3,800 worth of Accounts Payable had not been recorded. b. In total, the creditors were willing to give a discount of $2,500 upon settlement of the Accounts Payable. c. Salaries and wages totalling $2,300 had not been recorded. d. Accrued interest of $2,000 on the mortgage and $1,200 on the debentures had not been recorded. 3 3. At the commencement of the winding up the assets were expected to realise: a. Land and Buildings $ 95,000 b. Plant and equipment 58,000 c. Bills Receivable 40 000 d. Accounts Receivable 56 000 e. Inventory 112.000 f. Calls in arrears 16,000 Statement of affairs Valuation Estimated Realisable Values 1. Assets not specifically charged Calls in Arrears Inventory Accounts Receivable Bills Receivable 20,000 146,400 69,600 57,600 293,600 16,000 112,000 56,000 40,000 224,000 2. Assets subject to specific changes Book Value 109,200 -83,600 98,400 -16,800 25,600 Freehold Property Less Amounts owing Plant and Equipment Less Amounts owing Total Assets Total Estimated Realisable Values 11,400 81,600 400,800 41,200 276,600 276,600
