Company Accounting Written Assignment
The trial balance of Remi Ltd's accounts as at 30 June 2017 is shown below:
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REMI LTD Trial Balance as at 30 June 2017
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Debit
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Credit
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Share Capital - 90,000 A ordinary shares - fully paid
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$108 000
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Share Capital - 100,000 B ordinary shares issued for $1, called to 60c
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Calls in arrears - B ordinary
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$18 000
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Share Capital - 50,000 12% preference shares - fully paid Retained Earnings
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60 000
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General
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14 640
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Reserve Land
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12 000
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Buildings
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37 200
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Accumulated Depreciation -
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108 000
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36 000
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Buildings Plant and equipment
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Accumulated Depreciation - Plant and
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98 400
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16 800
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Equipment Cash at bank
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Accounts
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1 200
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Receivable
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69 600
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Inventory
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146 400
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Bills Receivable
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57 6000
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34 560
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Debentures (secured by circulating charge) Accounts Payable
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108 000
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Income Tax Payable
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4 800
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Mortgage on Land and Buildings
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81 600
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$536 400
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$536 400
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Other information:
1. There is an arrears of preference dividend of $14,400. The constitution gives preference shareholders priority of payment of arrears of preference dividends. However, all shares rank equally regarding return of capital based on the number of shares held.
2. The liquidator discovered that:
a. $3,600 worth of Accounts Payable had not been recorded.
b. In total, the creditors were willing to give a discount of $2,400 upon settlement of the Accounts Payable.
c. Salaries and wages totalling $1,680 had not been recorded.
d. Accrued interest of $2,400 on the mortgage and $1,440 on the debentures had not been recorded.
3. At the commencement of the winding up the assets were expected to realise:
a. Land and Buildings $ 95,000
b. Plant and equipment 56,000
c. Bills Receivable 42 000
d. Accounts Receivable 56 000
e. Inventory 110,000
f. Calls in arrears 16,000
4. The mortgage holder subsequently took possession of the land and buildings and sold them for $90,000. Any excess over the amount owing on the mortgage was given to the liquidator.
5. At the completion of the winding up, the following information was available.
a. The other assets realised:
i. Inventories $ 112,800
ii. Plant and Equipment 52,800
iii. Bills Receivable 33,600
iv. Accounts receivable 42,000
b. Liquidator's expenses were $960 and remuneration was $4,800.
c. Call in arrears were able to be collected. All uncalled capital proved to be collectable.
Required -
1. Prepare a report as to affairs as at 30 June 2017. Base this on the example of Fern Ltd on page 1311-12 of the text book.
2. Prepare all the relevant journal entries in Remi Ltd to wind up the company. Narrations are required. Clearly show the order of priority of payment to the creditors.
3. Show clearly any workings in relation to the final distribution to shareholders.
4. Prepare the Liquidation account, the Shareholder's distribution account and Liquidator's cash account. Show all of the relevant detail in the account entries (i.e. do not aggregate transactions into one amount).
5. Presentation of information - formatting, and written expression (including spelling and grammar).
Attachment:- Assignment Files.rar