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

Additional information:

(a) Proceeds from the sale of assets and collections:
	$
Accounts receivable	3,850,000
Inventory	567,000
Land and buildings	5,500,000
Furniture and fittings	875,000
Calls in arrears	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.

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.

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