Kelly Mills Ltd was wound up on 22nd August 2020

Kelly Mills Ltd was wound up on 22^nd August 2020.

Kelly Mills Ltd

Trial Balance

as at 22^nd 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.