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EN

Kelly Mills Ltd was wound up on 22nd August 2020. Kelly Mills Ltd Trial Balance as at 22nd August 2020

Kelly Mills Ltd was wound up on 22nd August 2020.
Kelly Mills Ltd
Trial Balance
as at 22nd August 2020

Debit
Credit
Cash
$46 800
Inventories
981 760
Plant and
equipment
1 099 280
Land and
buildings
312 000
Accumulated
losses
420 160
Accounts payable
$832 000
Alliance Bank
mortgage loan (secured on land and buildings)
208 000
Share capital: 1
820 000 ordinary shares issued for $1 each, fully paid
. .
1 820 000
$2 860 000
$2 860
000
The following information is relevant
(a) The assets were sold and realised the following cash amounts:
Inventories
$624 000
Plant and machinery
$728 000
(b) The Alliance Bank took possession of the land and buildings, sold them for $468 000 and after the debt was cleared paid any excess funds to the liquidator.
(c) Liquidation costs were $98 800.
(d) The liquidator paid all liabilities.
Required
Prepare the JOURNAL ENTRIES to wind up the affairs of Kelly Mills Ltd and to calculate any deficiency and distribution to the shareholders.
T accounts are NOT required.

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