Q1. A compulsory winding up in insolvency order was issued by the court in respect of Rock Bottom Ltd. The company had a capital of 65 000 fully paid ordinary shares of $1 each. The liquidator took possession of the company's assets which raised $873 145 on sale. Included in the sale proceeds was $221 000 from the disposal of the land and buildings.

The creditors submitted their claims and the following debts were admitted as proven: Liquidation expenses $3 900 Liquidator's remuneration 10 400 Mortgage loan secured on land and buildings 130 000 Additional mortgage loan on land and buildings 104 000 Employees' wages 5 employees for 2 weeks at $520 per week 5 200 Secretary's salary 3 weeks at $314 per week 942 Employees' holiday pay 6 500 Sales commission 650 Managing director's salary 4 weeks at $780 per week 3 120 Directors' fees 3 900 Trade creditors 104 000 Unsecured loan stock 130 000 Debentures (secured by circulating security interest) 390 000 PAYG tax instalment 1 014 Fringe benefits tax 2 600 GST 2 586

Required

Show the order of priority of payment of debts for Rock Bottom Ltd and calculate the amount payable to the company's ordinary unsecured creditors.