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In: Accounting

Plano Ltd, whose capital consisted of $50000 in fully paid shares, was wound up as a...

Plano Ltd, whose capital consisted of $50000 in fully paid shares, was wound up as a result of a court order. Its liquidator realised $1,343,300 from the sale of the company’s assets. This amount included $340,000 from the proceeds on sale of the company’s land and buildings. Debts proved and admitted were:
Unsecured Notes
200000
Debentures (secured by circulating security interest)
600000
First mortgage on land and buildings
200000
Trade accounts payable
160000
PAYG tax instalment
1560
Fringe benefits tax
4000
Directors’ fees
6000
GST
3978
Employees’ holiday pay
10000
Employees’ wages —
8000
Secretary’s salary —
1440
Managing director’s salary —
4800
Sales commission
1000
Liquidation expenses
6000
Second mortgage on land and buildings
160000
Liquidator’s remuneration
16000
Required
Show the order of priority of payment of debts for Plano Ltd and calculate the amount payable to the company’s trade accounts payable.

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ekkarill92 answered 2 years ago
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