Question: Sid the liquidator has been appointed to wind up Sunk Pty Ltd. He finds that the company has the following assets and liabilities as shown

Sid the liquidator has been appointed to wind up Sunk Pty Ltd. He finds that the company has the following assets and liabilities as shown below.

Assets Shop $900,000

Stock $ 20,000

ANZ Credit $ 10,000

Car $ 10,000

Total Assets $940,000

Liabilities

Mortgage over the shop $910,000

Liquidators Expenses $ 10,000

Wages owing $ 30,000

owing to unsecured creditors $ 40,000

Total Liabilities $990,000

Liarman Bros Bank has the mortgage over the shop and wants to know how much will be distributed to them based on these assets and liabilities.

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