Reference no: EM132674819

Liquidation expenses $3 900 Liquidator's remuneration 10 400 Mortgage loan secured on land and buildings A compulsory winding up in insolvency order was issued by the court in respect of Rock Bottom Ltd. The company had a capital of 65 000 fully paid ordinary shares of $1 each. The liquidator took possession of the company's assets which raised $873 145 on sale. Included in the sale proceeds was $221 000 from the disposal of the land and buildings.

The creditors submitted their claims and the following debts were admitted as proven: 130 000

Additional mortgage loan on land and buildings                         104,000

Employees' wages 5 employees for 2 weeks at $520 per week     5,200

Secretary's salary - 3 weeks at $314 per week                          942

Employees' holiday pay                                                         6,500

Sales commission                                                                 650

Managing director's salary - 4 weeks at $780 per week              3,120

Directors' fees                                                                       3,900

Trade creditors                                                                    104,000

Unsecured loan stock                                                            130,000

Debentures (secured by circulating security interest)                   390,000

PAYG tax instalment                                                              1,014

Fringe benefits tax                                                               2,600

GST                                                                                    2,586

Required

Problem 1: Show the order of priority of payment of debts for Rock Bottom Ltd and calculate the amount payable to the company's ordinary unsecured creditors.