Kelly Mills Ltd was wound up on 22nd August 2020.Kelly Mills LtdTrial Balanceas at 22nd August 2020DebitCreditCash$46 800Inventories981 760Plant and equipment1 099 280Land and buildings312 000Accumulated losses420 160Accounts payable$832 000Alliance Bank mortgage loan (secured on land and buildings)208 000Share capital: 1 820 000 ordinary shares issued for $1 each, fully paid..1 820 000$2 860 000$2 860 000The following information is relevant(a) The assets were sold and realised the following cash amounts:Inventories $624 000Plant and machinery $728 000(b) The Alliance Bank took possession of the land and buildings, sold them for $468 000 and after the debt was cleared paid any excess funds to the liquidator.(c) Liquidation costs were $98 800.(d) The liquidator paid all liabilities.RequiredPrepare the JOURNAL ENTRIES to wind up the affairs of Kelly Mills Ltd and to calculate any deficiency and distribution to the shareholders.T accounts are NOT required.
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