Zachary Ltd went into liquidation on 1 July 2021 and presented the following statement of financial position.

 

 

Required:

Show the ranking of creditor's claims in strict order of preference in accordance with the Corporations Act 2001. Include calculations of to whom and how much the liquidator will pay.

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Zachary Ltd Statement of Financial Position as at 30 June 2021 (Extract) $ Assets Current assets Accounts receivable Inventory Non-current assets Land and buildings Furniture and fittings Less: Accumulated depreciation Total assets Liabilities Current liabilities Accrued expenses Overdraft Trade creditors Non-current liabilities Debentures Total liabilities Net assets $ 4,900,000 1,225,000 5,120,000 2,400,000 420,000 1,980,000 75,200 57,000 985,000 $ 6,125,000 7,100,000 13,225,000 1,117,200 1,000,000 2,117,200 11,107,800 Zachary Ltd Statement of Financial Position as at 30 June 2021 (Extract) $ Assets Current assets Accounts receivable Inventory Non-current assets Land and buildings Furniture and fittings Less: Accumulated depreciation Total assets Liabilities Current liabilities Accrued expenses Overdraft Trade creditors Non-current liabilities Debentures Total liabilities Net assets $ 4,900,000 1,225,000 5,120,000 2,400,000 420,000 1,980,000 75,200 57,000 985,000 $ 6,125,000 7,100,000 13,225,000 1,117,200 1,000,000 2,117,200 11,107,800 Zachary Ltd Statement of Financial Position as at 30 June 2021 (Extract) $ Assets Current assets Accounts receivable Inventory Non-current assets Land and buildings Furniture and fittings Less: Accumulated depreciation Total assets Liabilities Current liabilities Accrued expenses Overdraft Trade creditors Non-current liabilities Debentures Total liabilities Net assets $ 4,900,000 1,225,000 5,120,000 2,400,000 420,000 1,980,000 75,200 57,000 985,000 $ 6,125,000 7,100,000 13,225,000 1,117,200 1,000,000 2,117,200 11,107,800 Zachary Ltd Statement of Financial Position as at 30 June 2021 (Extract) $ Assets Current assets Accounts receivable Inventory Non-current assets Land and buildings Furniture and fittings Less: Accumulated depreciation Total assets Liabilities Current liabilities Accrued expenses Overdraft Trade creditors Non-current liabilities Debentures Total liabilities Net assets $ 4,900,000 1,225,000 5,120,000 2,400,000 420,000 1,980,000 75,200 57,000 985,000 $ 6,125,000 7,100,000 13,225,000 1,117,200 1,000,000 2,117,200 11,107,800

Answer rating: 100% (QA)

Lets calculate the amount to be paid to each creditor based on the priority ranking mentioned earlie... View the full answer