Question 2:

Corona Limited went into voluntary liquidation on 31st May 2020. Its summarized statement of financial position then being as follows:

Required:

Prepare the following ledger accounts:

1. Liquidation Account 2.

Cash at bank account

3. Shareholders' Distribution Account

Corona Limited Statement of Financial Position As At 31* May 2020 Current S S Current $ $ Assets Liabilities Receivables Creditors 20,000 8,000 Less: provision for 3,000 5,000 doubtful debts Inventory 12,000 Cash Equity 4,000 21,000 Share capital: Non-current 120 000 assets shares issued 120,000 at a price of $1 Land Less: calls in 20,000 arrears 14,000 106,000 Less: accumulated 5.000 15,000 depreciation Plant 100,000 ess: 10,000 90,000 105,000 accumulated depreciation 126,000 126,000 Additional Information: 1. All assets realized $150 000. 2. Calls in arrears were fully collected. 3. Payables allowed $50 discount. 4. Costs of liquidation were $3000. THE END ALL THE BEST