The details below were extracted from the accounting records of Scenic Ranges Ltd (a company in the process of liquidation).

50 000 $1 preference shares fully paid $50 000

100 000 $1 ordinary shares paid to 50 cents $50 000

Cash available (after payment of all creditors) $10 000

Assume that the constitution of Scenic Ranges Ltd states that in the event of liquidation, all shares are to rank equally, based on the number of shares held, in distributing any surplus or deficiency

What will be the deficiency or surplus apportioned to preference shareholders?

Select one:

A deficiency of $30 000

A surplus of $20 000

A surplus of $30 000

A deficiency of $50 000