PROBLEM 1 COMPANY: ORDER OF DEBTS Example: Lienal the liquidator has been appointed to wind up Sunk Pty Ltd. He finds that the company has the following assets and liabilities as shown below. Liarman Bros Bank has the mortgage over the shop and wants to know how much will be distributed to them as secured creditor. COMPANY: ORDER OF DEBTS Assets Shop $800,000 Stock $ 50,000 ANZ Credit $ 15,000 Car $ 10,000 $875,000 Liabilities Mortgage over the shop $820,000 Liquidators Expenses $ 10,000 Wages $ 15,000 Trade Bills $ 80,000 $925,000