Trouble Ltd has an issued share capital of 100,000 x 1 shares and is in compulsory liquidation. The company has various creditors as follows:

(a)The members of the company have not been paid the 15,000 dividend declared in the previous year's annual general meeting.

(b)The liquidation costs, including the liquidator's remuneration, amount to 4,500.

(c)Demand plc has a floating charge over all of the company's assets, registered 17 years ago, to secure a debt which currently stands at 25,000.

(d)Two months' VAT, amounting to 2,600, is owed to HMRC.

(e)The company's employees have been paid, with the exception of 800 accrued holiday pay.

(f)Trust plc is owed 15,500 in respect of goods supplied to Trouble Ltd.

The amount raised by the sale of the company's assets, and available for distribution, is 52,000.

Required:

(a)In what order will these creditors be paid and how much will each creditor receive?

(b)Outline the various kinds of liquidation or windings-up that exist and discuss the different features that distinguish them from each other.