Question 25 The trial balance of Fallen Ltd on I September 2018, the date on which the court ordered that the company be wound up, is presented below. FALLEN LTD Trial Balance as at 1 September 2018 Debit Credit Bank (secured over land and buildings) Accounts payable Accrued expenses Unsecured notes Debentures (secured by a circulating security interest over the company's assets) Share capital: 7% preference issued at $1 S 114 000 91 000 2 000 150 000 200 000 50 000 200 000 40 000 20 000 1 000 17 000 40 000 A' ordinary issued at Si B' ordinary issued at SI C" ordinary issued at SI Allowance for doubtful debts Accumulated depreciation: Vehicles Plant and equipment Cash Accounts receivable Inventory Shares in Hapless Pty Ltd Vehicles Plant and equipment Land and buildings (net) Goodwill Retained earnings S 100 97 000 146 400 17 500 29 000 181 000 250 000 24 000 180 000 Additional information (a) Share capital consisted of: 50 000 7% preference shares fully paid 200 000 'A' ordinary shares fully paid 100 000 B' ordinary shares paid to 40c 100 000C, ordinary shares paid to 20c The constitution provided that preference shareholders were preferential as to return of capital in a winding up, and 'C' ordinary shareholdets were deferred as to return of capital until all other classes of shares had been paid in full