Question : Insolvency Charle the Cheap Ltd went into voluntary liquidation on 30 June 2021. Its stammarised statement of financial position at that date is as follows: Equity Share capital Total equity Charlie the Cheap Ltd Statement of Financial Position As at 30 June 201 Current assets Date 48 000 Cash (Transfer cash) Inventory Non current assets Land Total assets Current liabilities Payables 48 000 Net assets (Realisation of assets) All assets realised amounted to $48 000. Payables allowed an $800 discount Costs of liquidation were $5 000. Required @ (11) Account Transfer of carrying amounts) Complete the journal entries to liquidation. The narrations for the journal entnes have been provided to you as additional guidance. Si TELE Record the entries in the Liquidation account, the Liquidators receipts & payments, and the Shareholders distribution account. (30 daa ne. Journal for your answer to question 4 part (i). Expand the table as needed to contain your answer. 31000 (Record expenses of liquidation) OKO (Record payment of payables & discount) Dr 13 000 50 000 63 000 15 000 48 000 Cr
Question : Insolvency Charle the Cheap Ltd went into voluntary liquidation on 30 June 2021. Its stammarised statement of financial position at that date is as follows: Equity Share capital Total equity Charlie the Cheap Ltd Statement of Financial Position As at 30 June 201 Current assets Date 48 000 Cash (Transfer cash) Inventory Non current assets Land Total assets Current liabilities Payables 48 000 Net assets (Realisation of assets) All assets realised amounted to $48 000. Payables allowed an $800 discount Costs of liquidation were $5 000. Required @ (11) Account Transfer of carrying amounts) Complete the journal entries to liquidation. The narrations for the journal entnes have been provided to you as additional guidance. Si TELE Record the entries in the Liquidation account, the Liquidators receipts & payments, and the Shareholders distribution account. (30 daa ne. Journal for your answer to question 4 part (i). Expand the table as needed to contain your answer. 31000 (Record expenses of liquidation) OKO (Record payment of payables & discount) Dr 13 000 50 000 63 000 15 000 48 000 Cr
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 23E
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