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Zachary Ltd went into liquidation on 1 July 2021 and presented the following statement of financial position. see image 1-2 Required: Show the ranking of
Zachary Ltd went into liquidation on 1 July 2021 and presented the following statement of financial position.see image 1-2 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 4,900,000 1,225,000 6,125,000 5,120,000 2,400,000 420,000 1,980,000 7,100,000 13,225,000 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 75,200 57,000 985,000 1,117,200 1,000,000 2,117,200 11,107,800 Net assets Additional information: (a) Proceeds from the sale of assets and collections: Accounts receivable Inventory Land and buildings Furniture and fittings Calls in arrears $ 3,850,000 567,000 5,500,000 875,000 11,500 (b) Payments approved by the Liquidator in addition those detailed above: Accrued expenses 74,000 Director's salary 30,000 Employee retrenchment payments 265,000 Interest on overdraft 11,265 Interest on debentures 120,000 Liquidator's expenses and fees 480,000 Trade creditors 1,236,000 Note: Overdraft is a secured interest in circulating asset - inventory Debentures have a secured interest over land and buildings The interest incurred and proved or accepted by the liquidator on secured finance facilities have the same priority as the finance facility. Zachary Ltd Statement of Financial Position as at 30 June 2021 (Extract) $ $ $ Assets Current assets Accounts receivable 4,900,000 1,225,000 6,125,000 5,120,000 2,400,000 420,000 1,980,000 7,100,000 13,225,000 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 75,200 57,000 985,000 1,117,200 1,000,000 2,117,200 11,107,800 Net assets Additional information: (a) Proceeds from the sale of assets and collections: Accounts receivable Inventory Land and buildings Furniture and fittings Calls in arrears $ 3,850,000 567,000 5,500,000 875,000 11,500 (b) Payments approved by the Liquidator in addition those detailed above: Accrued expenses 74,000 Director's salary 30,000 Employee retrenchment payments 265,000 Interest on overdraft 11,265 Interest on debentures 120,000 Liquidator's expenses and fees 480,000 Trade creditors 1,236,000 Note: Overdraft is a secured interest in circulating asset - inventory Debentures have a secured interest over land and buildings The interest incurred and proved or accepted by the liquidator on secured finance facilities have the same priority as the finance facility
see image 1-2
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.
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