Zachary Ltd went into liquidation on 1 July 2020. The directors presented the following statement of financial position to the liquidator:

Additional Information

(a) The liquidator was able to receive the following amounts for assets:

(b) The liquidator conducted a review of the Statement of Financial Position submitted by the directors and performed a review of proof of debts. The liquidator has identified and accepted additional liabilities and changes to some of the other liabilities as follows:

There was no change made to the overdraft balance or the debenture face value due to debenture holders. The overdraft and related interest is secured against the accounts receivable balance whilst the debentures and related interest are secured against the land and buildings.

(c) Liquidator's remuneration amounted to $480,000.

(d) Upon review of the constitution of Zachary Ltd, the liquidator has identified that preference shares have preference as to dividends and repayment of capital. All ‘A’ and ‘B’ class ordinary shares rank equally.

Requirements

1. Prepare the cash account, liquidation account and shareholders' distribution account in T account format.

2. Complete the member's distribution schedule identifying how each class of share may share in any cash available after settlement of all creditors.

3. Based on your calculations, how much is transferred from the Liquidation Account to the Shareholders' Distribution Account?

4. Based on your calculations, how much will be transferred from the Cash Account to the Shareholders' Distribution Account?

5. Based on your calculations, what is the total of the Dr side of the Shareholders' Distribution Account?