Reference no: EM132736652
Question - On 30 April 2017 ForeverIs Not Enough Ltd went into liquidation, its equity being as follows:
75000 ordinary shares issued and fully paid
Retained earnings $175,000 (35,600) $139,400
Debts proved and admitted for payment by the liquidator were: Debentures (secured by circulating security $100,000 interest)
Mortgage loan secured over land $240,000
Building $45,800
Unpaid annual leave $56,000
Employee retrenchment payments $8,400
Director's salary $2,400
Directors' fees $6200
PAYG tax instalments $125,000
Accounts payable $1,300
Liquidation expenses $5,000
Liquidator's remuneration
The land and buildings were seized by the secured creditor and sold to repay the mortgage loan. Surplus funds amounting to $5000 were forwarded to the liquidator. All other assets were sold and realised $230000. Any calls which the liquidator may need to make are expected to be recoverable.
Required - Prepare the liquidator's statement of receipts and payments (show debts in order of priority of payment) and the Shareholders' Distribution account for ForeverIs Not Enough Ltd. (Show all calculations.)
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