ABC Ltd went into liquidation. Its statement of financial position at the time of liquidation included: Assets 20,000, Liabilities 10,000, Share capital $15,000 and Retained earnings -$5000. Assets were sold for $18,500. Liabilities along with liquidator’s expenses of $500 were paid. Remaining funds were distributed to shareholders. Pass necessary journal entries.

Answer rating: 100% (QA)

To account for the liquidation of ABC Ltd we need to pass the necessary journal entries to recor... View the full answer