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

---

Definitions:

Avoidant Personality Disorder

A mental health disorder characterized by a long-standing pattern of avoidance of social interactions out of fear of rejection, inadequacy, and extreme sensitivity to negative evaluation.

Social Ties

The connections between individuals in a society, including friendships, familial relationships, work associations, and other forms of social interactions.

Histrionic Personality Disorder

A mental disorder characterized by a long-term pattern of excessive emotionality and attention seeking.

Cognitive-Behavioral

An intervention technique designed to tackle unhealthy emotional responses, behaviors, and thought patterns through a goal-focused, orderly sequence.