The details below were extracted from the accounting records of Great South East Ltd (acompany in the process of liquidation).

$

40 000 $1 preference shares fully paid40 000

120 000 $1 ordinary shares paid to 50 cents60 000

100 000

Cash available (after payment of all creditors)10 000

Assume that the constitution of Great South East 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 ordinary shareholders?

Group of answer choices

A surplus of $17 500

A deficiency of $17 500

A surplus of $67 500

A deficiency of $67 500