Zachary Ltd went into liquidation on 1 July 2021 and presented the following statement of financial position.

 

 

Required:

Show the ranking of creditor's claims in strict order of preference in accordance with the Corporations Act 2001. Include calculations of to whom and how much the liquidator will pay.

Zachary Ltd Statement of Financial Position as at 30 June 2021 (Extract) $ Assets Current assets Accounts receivable Inventory Non-current assets Land and buildings Furniture and fittings Less: Accumulated depreciation Total assets Liabilities Current liabilities Accrued expenses Overdraft Trade creditors Non-current liabilities Debentures Total liabilities Net assets $ 4,900,000 1,225,000 5,120,000 2,400,000 420,000 1,980,000 75,200 57,000 985,000 $ 6,125,000 7,100,000 13,225,000 1,117,200 1,000,000 2,117,200 11,107,800 Zachary Ltd Statement of Financial Position as at 30 June 2021 (Extract) $ Assets Current assets Accounts receivable Inventory Non-current assets Land and buildings Furniture and fittings Less: Accumulated depreciation Total assets Liabilities Current liabilities Accrued expenses Overdraft Trade creditors Non-current liabilities Debentures Total liabilities Net assets $ 4,900,000 1,225,000 5,120,000 2,400,000 420,000 1,980,000 75,200 57,000 985,000 $ 6,125,000 7,100,000 13,225,000 1,117,200 1,000,000 2,117,200 11,107,800