Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a liquidator was appointed after stranded asset pt

A liquidator was appointed after Stranded Asset Pty Ltd was declared insolvent on 1 July...

80.2K

Verified Solution

Question

Accounting

A liquidator was appointed after Stranded Asset Pty Ltd was declared insolvent on 1 July 2021. The company’s assets realised $14,250,000. This came from the sale of the secured land and buildings for $7,500,000 and other assets which were sold for $6,750,000. The creditors totalled $16,350,000, and were made up of the following amounts: Secured creditor $9,000,000, receiver’s costs when realising secured asset $150,000, liquidator’s expenses $600,000, unsecured trade payables $2,400,000, tax payable $1,050,000, local government rates $300,000, staff wages payable $900,000, executive directors’ wages payable (5 directors) $450,000, staff leave entitlements $150,000, executive directors’ leave entitlements (5 directors) $150,000, unsecured bank overdraft $750,000, and dividends payable $450,000.
REQUIRED
You are required to rank the above creditors and then to calculate how much each creditor would be paid.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students