Show the order of priority of payment of debts for Plano Ltd and calculate the amount payable to the company’s trade accounts payable
- Plano Ltd, whose capital consisted of $50000 in fully paid shares, was wound up as a result of a court order. Its liquidator realised $1,343,300 from the sale of the company’s assets. This amount included $340,000 from the proceeds on sale of the company’s land and buildings. Debts proved and admitted were:
Unsecured Notes |
200000 |
Debentures (secured by circulating security interest) |
600000 |
First mortgage on land and buildings |
200000 |
Trade accounts payable |
160000 |
PAYG tax instalment |
1560 |
|
4000 |
Directors’ fees |
6000 |
GST |
3978 |
Employees’ holiday pay |
10000 |
Employees’ wages — |
8000 |
Secretary’s salary — |
1440 |
Managing director’s salary — |
4800 |
Sales commission |
1000 |
Liquidation expenses |
6000 |
Second mortgage on land and buildings |
160000 |
Liquidator’s remuneration |
16000 |
Required
Show the order of priority of payment of debts for Plano Ltd and calculate the amount payable to the company’s trade accounts payable
- Plano Ltd, whose capital consisted of $50000 in fully paid shares, was wound up as a result of a court order. Its liquidator realised $1,343,300 from the sale of the company’s assets. This amount included $340,000 from the proceeds on sale of the company’s land and buildings. Debts proved and admitted were:
Unsecured Notes |
200000 |
Debentures (secured by circulating security interest) |
600000 |
First mortgage on land and buildings |
200000 |
Trade accounts payable |
160000 |
PAYG tax instalment |
1560 |
Fringe benefits tax |
4000 |
Directors’ fees |
6000 |
GST |
3978 |
Employees’ holiday pay |
10000 |
Employees’ wages — |
8000 |
Secretary’s salary — |
1440 |
Managing director’s salary — |
4800 |
Sales commission |
1000 |
Liquidation expenses |
6000 |
Second mortgage on land and buildings |
160000 |
Liquidator’s remuneration |
16000 |
Required
Show the order of priority of payment of debts for Plano Ltd and calculate the amount payable to the company’s trade accounts payable
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