QuestionInsolvencyCharle the Cheap Ltd went into voluntary liquidation on 30 June 2021. Its stammarisedstatement of financial position at that date is as followsEquityShare capitalTotal equity(11)Charle the Cheap LtdStatement of Financial PositionAs at 30 June 201Current assetsDate48 000 Cash(Transfer cash)InventoryNon current assetsLandTotal assetsCurrent liabilitiesPayables48 000 Net assetsAll assets realised amounted to $48 000. Payables allowed an $800 discount Costs ofliquidation were $5 000.Required0(Realisation of assets)Complete the journal entries to liquidation. The narrations for the journal entrieshave been provided to you as additional guidance.fi RECESSRecord the entries in the Liquidation account, the Liquidators receipts &payments, and the Shareholders distribution account. (daa ne.Journal for your answer to question 4 part (1). Expand the table as needed to containyour answer.Account(Transfer of carrying amounts)(Record expenses of liquidation)(Record payment of payables & discount)Close of shareholders account)(Distribution of final funds to shareholders)(Close out bicuidation profit or loss)3100010 000DrLiquidators Receipts & PaymentsLiquidation15 00030 00063 000Shareholders Distribution-15 00048 000CrLedger accounts for your answer to question 4 part (ii). Expand the tables as needed tocontain your answer

Liquidation :— It is the process of ending of business and distributing the assets to creditors.…

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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