The Details Below Were Extracted from the Accounting Records of Great

question 31

Multiple Choice

The details below were extracted from the accounting records of Great South East Ltd (a company in the process of liquidation) .
$\begin{array}{ll}&\$\\40000 \$ 1 \text { preference shares fully paid } & 40000 \\ 120000 \$ 1 \text { ordinary shares paid to } 50 \text { cents } & \underline{60000} \\ & \underline{100000}\\\\ \text { Cash available (after payment of all creditors) }&10000\end{array}$


Assume that the constitution of Great South East Ltd states that in the event of liquidation, all shares are to rank equally, based on the number of shares held, in distributing any surplus or deficiency.
What will be the deficiency or surplus apportioned to preference shareholders?

• A) A surplus of $22 500
• B) A deficiency of $22 500
• C) A surplus of $67 500
• D) A deficiency of $67 500

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Definitions:

Ego Integrity

The final stage in Erik Erikson's theory of psychosocial development where the adult reflects on their life and either achieves a sense of fulfillment or experiences despair.

Despair

A profound feeling of hopelessness, typically associated with major depressive episodes or significant life losses.

Physical Decline

The gradual loss of physical abilities and functions as part of the aging process.

Ego Differentiation

A process in psychological development where an individual's self-worth becomes less tied to their professional role or work performance.