Oakland Ltd, whose capital consisted of $50000 in fully paid shares, was wound up as a result of a court order. Its liquidator realised $3,358,250 from the sale of the company’s assets. This amount included $850,000 from the proceeds on sale of the company’s land and buildings. Debts proved and admitted were:     Unsecured Notes 700000 Debentures (secured by circulating security interest) 1500000 First mortgage on land and buildings 500000 Trade accounts payable 400000 PAYG tax instalment 3900 Fringe benefits tax 10000 Directors’ fees 15000 GST 9945 Employees’ holiday pay 25000 Employees’ wages — 20000 Secretary’s salary — 3600 Managing director’s salary — 12000 Sales commission 2500 Liquidation expenses 15000 Second mortgage on land and buildings 400000 Liquidator’s remuneration 40000   Required Show the order of priority of payment of debts for Oakland Ltd and calculate the amount payable to the company’s trade accounts payable.

Question
Oakland Ltd, whose capital consisted of $50000 in fully paid shares, was wound up as a result of a court order. Its liquidator realised $3,358,250 from the sale of the company’s assets. This amount included $850,000 from the proceeds on sale of the company’s land and buildings. Debts proved and admitted were:

 

 

Unsecured Notes

700000

Debentures (secured by circulating security interest)

1500000

First mortgage on land and buildings

500000

Trade accounts payable

400000

PAYG tax instalment

3900

Fringe benefits tax

10000

Directors’ fees

15000

GST

9945

Employees’ holiday pay

25000

Employees’ wages —

20000

Secretary’s salary —

3600

Managing director’s salary —

12000

Sales commission

2500

Liquidation expenses

15000

Second mortgage on land and buildings

400000

Liquidator’s remuneration

40000

 

Required

Show the order of priority of payment of debts for Oakland Ltd and calculate the amount payable to the company’s trade accounts payable.

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