How to prepare statement detailing the distribution of cash

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Reference no: EM132324924

Question

On 1 September 2018, Strategix Ltd went into liquidation. At that date, the equity of Strategix Ltd comprised the following.

200 000 ordinary shares issued for $2 and paid to $1.50 $300 000

300 000 ordinary shares issued for $1 and fully paid . $300 000

total $600 000

Required

How to prepare statement detailing the distribution of cash to shareholders. Assume that after realising the assets and paying all creditors, the liquidator had $50 000 cash available to distribute to shareholders.

Reference no: EM132324924

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