Sid the liquidator has been appointed to wind up Sunk Pty Ltd. He finds that the company has the following assets and liabilities as shown below. Assets Shop $900,000 Stock $ 20,000 ANZ Credit $ 10,000 Car $ 10,000 Total Assets $940,000 Liabilities Mortgage over the shop $910,000 Liquidators Expenses $ 10,000 Wages owing $ 30,000 owing to unsecured creditors $ 40,000 Total Liabilities $990,000 Liarman Bros Bank has the mortgage over the shop and wants to know how much will be distributed to them based on these assets and liabilities.
Sid the liquidator has been appointed to wind up Sunk Pty Ltd. He finds that the company has the following assets and liabilities as shown below. Assets Shop $900,000 Stock $ 20,000 ANZ Credit $ 10,000 Car $ 10,000 Total Assets $940,000 Liabilities Mortgage over the shop $910,000 Liquidators Expenses $ 10,000 Wages owing $ 30,000 owing to unsecured creditors $ 40,000 Total Liabilities $990,000 Liarman Bros Bank has the mortgage over the shop and wants to know how much will be distributed to them based on these assets and liabilities.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sid the liquidator has been appointed to wind up Sunk Pty Ltd. He finds that the company has the following assets and liabilities as shown below.
Assets Shop $900,000
Stock $ 20,000
ANZ Credit $ 10,000
Car $ 10,000
Total Assets $940,000
Liabilities
Mortgage over the shop $910,000
Liquidators Expenses $ 10,000
Wages owing $ 30,000
owing to unsecured creditors $ 40,000
Total Liabilities $990,000
Liarman Bros Bank has the mortgage over the shop and wants to know how much will be distributed to them based on these assets and liabilities.
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