Sox Ltd Has Two Classes of Ordinary Shares: 100 000

question 13

Multiple Choice

Sox Ltd has two classes of ordinary shares: 100 000 fully paid A ordinary shares (paid-up share capital $100 000) and 25 000 fully paid B ordinary shares (paid-up share capital $100 000) .The company was placed in liquidation.Liquidator's fees totaled $85 000, the assets were sold for $1 775 000 and these assets had a carrying amount of $1 600 000.
-Which of the following correctly shows the liquidation account of Sox Ltd?

• A)\(\begin{array}{lcc}
• & \text { Debit (\$) } & \text { Credit (\$) } \\
• \text { Assets }&1600000 \\
• \text { Receipts and payments account - assets sale } & &1775000 \\
• \text { Receipts and payments account - costs } & 85000 & \\
• \text { Members' distribution account } & 90000
• \end{array}\)
• B)\(\begin{array}{lcc}
• & \text { Debit (\$) } & \text { Credit (\$) } \\
• \text { Assets }&&1600000 \\
• \text { Receipts and payments account - assets sale } & 1775000 \\
• \text { Receipts and payments account - costs } & 85000 & \\
• \text { Members' distribution account } && 90000
• \end{array}\)
• C)\(\begin{array}{lcc}
• & \text { Debit (\$) } & \text { Credit (\$) } \\
• \text { Assets }&&1600000 \\
• \text { Receipts and payments account - assets sale } & 1775000 \\
• \text { Members' distribution account } &175000
• \end{array}\)
• D)\(\begin{array}{lcc}
• & \text { Debit (\$) } & \text { Credit (\$) } \\
• \text { Assets }&&1600000 \\
• \text { Receipts and payments account - assets sale } & 1775000 \\
• \text { Members' distribution account } &&175000
• \end{array}\)

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