Makings Ltd, whose capital consisted of $150 000 in fully paid shares, was wound up as...

 

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Makings Ltd, whose capital consisted of $150 000 in fully paid shares, was wound up as a result of a court order. Its liquidator realised $581 680 from the sale of the company's assets. This amount included $170 000 from the proceeds on sale of the company's land and buildings (which the mortgage holder disposed of). Debts proved and admitted were as follows. Unsecured notes Debentures (secured by circulating security interest) Mortgage on land and buildings Accounts payable PAYG tax instalment Fringe benefits tax Directors' fees GST Employees' holiday pay Employees' wages-5 employees for 2 weeks at $400 per week Secretary's salary-3 weeks at $240 per week Managing director's salary-4 weeks at $600 per week Sales commission Liquidation expenses Liquidator's remuneration $100 000 300 000 180 000 80 000 780 2 000 3 000 1989 5 000 4 000 720 2 400 500 3 000 8 000> Required Show the order of priority of payment of debts and amounts paid to creditors for Makings Ltd. 0 Makings Ltd, whose capital consisted of $150 000 in fully paid shares, was wound up as a result of a court order. Its liquidator realised $581 680 from the sale of the company's assets. This amount included $170 000 from the proceeds on sale of the company's land and buildings (which the mortgage holder disposed of). Debts proved and admitted were as follows. Unsecured notes Debentures (secured by circulating security interest) Mortgage on land and buildings Accounts payable PAYG tax instalment Fringe benefits tax Directors' fees GST Employees' holiday pay Employees' wages-5 employees for 2 weeks at $400 per week Secretary's salary-3 weeks at $240 per week Managing director's salary-4 weeks at $600 per week Sales commission Liquidation expenses Liquidator's remuneration $100 000 300 000 180 000 80 000 780 2 000 3 000 1989 5 000 4 000 720 2 400 500 3 000 8 000> Required Show the order of priority of payment of debts and amounts paid to creditors for Makings Ltd. 0

Answer rating: 100% (QA)

The image provides information about the company Makings Ltd which is being wound up and has certain debts that need to be repaid The liquidator has realized 581680 from the sale of the companys asset... View the full answer