Question:

Corona Limited went into voluntary liquidation on 31^st May 2020. Its summarised statement of financial position then being as follows: (shown on the next page)

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 31st May 2020 Current 5 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 less: 10,000 90,000 105,000 accumulated depreciation 126,000 126,000