Question $2$

Accounting for Company Liquidation

$20$ Marks

Kagaroo Ltd went into voluntary liquidation on $30$ June $2018,$ its shareholders' equity is as

follows:

Note: Preference dividend is in arrears for two years.

The liquidator made the following calls;

$25$ cents per share on B class ordinary shares.

$25$ cents per share on C class ordinary shares.

All amounts due on these calls were received in full.

Debts due by the company amounted to $$15820,$ assets realised $$80180,$ and liquidation

expenses were $$579.$

The liquidator's remuneration was fixed at $1\%$ on the proceeds of assets.

Required:

$($a$)$ Prepare the liquidator's cash account.

$($b$)$ Prepare a statement showing how deficit is borne by the shareholders and amounts

refundable.