ACCOUNTING

  

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.