Accounts for liquidation Mammal Ltd went into voluntary liquidation on 30 June 2023. Its summarised statement of financial position at that date was as follows. MAMMAL LTD Statement of financial position as at 30 June 2023 Equity Current assets Share capital: Receivables $ 10 000 160 000 shares issued at a price of $1, called to 50c $ 80 000 Inventories 12 000 Cash 8 000 $ 30 000 Less: Calls in arrears (40 000 at 25c) (10 000 ) Non‐current assets Land 40 000 Plant 18 000 58 000 Total assets 88 000 Current liabilities Payables (18 000 ) Total equity $ 70 000 Net assets $ 70 000 All assets realised amounted to $60 000. Calls in arrears were fully collected. Payables allowed a $1000 discount. Costs of liquidation were $5000. Required Record the above in the Liquidation account, the Liquidator’s Receipts and Payments account and the Shareholders’ Distribution account (using the T ledger account).
Accounts for liquidation
Mammal Ltd went into voluntary liquidation on 30 June 2023. Its summarised
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MAMMAL LTD Statement of financial position as at 30 June 2023 |
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Equity |
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Current assets |
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Share capital: |
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Receivables |
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10 000 |
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160 000 shares issued at a price of $1, called to 50c |
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$ |
80 000 |
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Inventories |
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12 000 |
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Cash |
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8 000 |
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$ |
30 000 |
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Less: Calls in arrears (40 000 at 25c) |
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(10 000 |
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Non‐current assets |
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Land |
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40 000 |
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Plant |
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18 000 |
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58 000 |
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Total assets |
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88 000 |
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Current liabilities |
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Payables |
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(18 000 |
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Total equity |
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$ |
70 000 |
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Net assets |
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$ |
70 000 |
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All assets realised amounted to $60 000. Calls in arrears were fully collected. Payables allowed a $1000 discount. Costs of liquidation were $5000.
Required
Record the above in the Liquidation account, the Liquidator’s Receipts and Payments account and the Shareholders’ Distribution account (using the T ledger account).
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