QUESTION 6-External Administration 10 MARKS Jack Smith Ltd was placed into liquidation on 2 October 2016. After identifying all assets and liabilities at the date of liquidation, the company's trial balance at that date comprised: Jack Smith Ltd (in liquidation) Trial Balance as at 2 October 2016 $ Dr $ Cr Account Cash on hand Bank overdraft Accounts receivable Allowance for doubtful debts 10.000 15,000 95,000 16,000 Inventory Goodwill Building 292,000 150,000 2.300,000 Accumulated depreciation 450,000 Land 1,400,000 Interest payable on debenture Accounts payable Accrued salaries and wages (no excluded employees) Preference dividend payable Debentures (secured by mortgage on building) Accumulated losses General reserve Issued capital (fully paid) 15,000 20,000 40,000 30,000 1,860,000 1,044,000 1,200,000 1,645,000 5,291,000 5,291,000 Total (a) The non-cash assets realised $1,700,000 in total, of which $1,425,000 relates to the sale of the building Liquidation fees/expenses are expected to be 3% of cash received from asset (b) sales. Required: Prepare the Liquidation and Creditor's Control general ledger accounts to show the final liquidation of Jack Smith Ltd, showing all workings and calculations