Bugs Ltd entered voluntary liquidation on June 30, 2020. The summary statement of financial position on this
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Question:
Bugs Ltd entered voluntary liquidation on June 30, 2020. The summary statement of financial position on this date is as follows:
insect ltd statement of financial position As of 30 June 2020 | ||||
Equality | current assets | |||
Capital | 53 000 | in advance | 10 000 | |
Inventory | 12 000 | 22 000 | ||
fixed assets | ||||
Kara | 40 000 | |||
Total assets | 62 000 | |||
current liabilities | ||||
debts | 9 000 | |||
Total equity | 53 000 | net assets | 53 000 |
The amount of all realized assets was $55,000. Debits allowed a discount of $500. Liquidation costs were $3,000.
Required
- Complete journal entries for liquidation.
- Record entries in the Liquidation account, Liquidation receipts and payments, and Shareholders distribution account.
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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