Flea Ltd, whose capital consisted of \($25 000\) in fully paid shares, was wound up as a result of a court order. Its liquidator realised \($335 825\) from the sale of the company’s assets. This amount included \($85 000\) from the proceeds on sale of the company’s land and buildings.

Debts proved and admitted were as follows.

Required

Show the order of priority of payment of debts for Flea Ltd and calculate the amount payable to the company’s trade accounts payable.

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Unsecured notes Debentures (secured by circulating security interest) First mortgage on land and buildings Trade accounts payable PAYG tax instalment Fringe benefits tax $ 50 000 150 000 50 000 40 000 390 1 000 Directors' fees GST 1 500 995 Employees' holiday pay Employees' wages -5 employees for 1 week at $400 per week Secretary's salary-3 weeks at $120 per week Managing director's salary-2 weeks at $600 per week Sales commission Liquidation expenses Second mortgage on land and buildings Liquidator's remuneration 2 500 2.000 360 1 200 250 1 500 40 000 4 000