Required

Prepare the JOURNAL ENTRIES to wind up the affairs of Kelly Mills Ltd and to calculate any deficiency and distribution to the shareholders.

T accounts are NOT required.

Answer Body buT BODY IT T Bodytes pboard Paragraph QUESTION ONE Kelly Mills Ltd was wound up on 22nd August 2020. (12 Marks) [Type Answer Here! Credit Kelly Mills Ltd Trial Balance as at 220d August 2020 Debit Cash $46 800 Inventories 981 760 Plant and equipment 1 099 280 Land and buildings 312 000 Accumulated losses 420 160 Accounts payable Alliance Bank mortgage loan (secured on land and buildings) Share capital: 1 820 000 ordinary shares issued for $1 each, fully paid $2 860 000 $832 000 208 000 1 820 000 $2 860 000 The following information is relevant (a) The assets were sold and realised the following cash amounts: Inventories $624 000 Plant and machinery $728 000 (b) The Allance Bank took possession of the land and buildings, sold them for $468 000 and after the debt was cleared paid any excess funds to the liquidator. (C) Liquidation costs were $98 800 Answer Body buT BODY IT T Bodytes pboard Paragraph QUESTION ONE Kelly Mills Ltd was wound up on 22nd August 2020. (12 Marks) [Type Answer Here! Credit Kelly Mills Ltd Trial Balance as at 220d August 2020 Debit Cash $46 800 Inventories 981 760 Plant and equipment 1 099 280 Land and buildings 312 000 Accumulated losses 420 160 Accounts payable Alliance Bank mortgage loan (secured on land and buildings) Share capital: 1 820 000 ordinary shares issued for $1 each, fully paid $2 860 000 $832 000 208 000 1 820 000 $2 860 000 The following information is relevant (a) The assets were sold and realised the following cash amounts: Inventories $624 000 Plant and machinery $728 000 (b) The Allance Bank took possession of the land and buildings, sold them for $468 000 and after the debt was cleared paid any excess funds to the liquidator. (C) Liquidation costs were $98 800