Reference no: EM132557651

On March 31, 2020, you were appointed receiver, at a remuneration of 5% of the gross proceeds on the sale of assets, in respect of Kulari Ltd. Your appointment was made by the Darbai Bank, which held an equitable mortgage over the assets of Kulari Ltd, in respect of an advance of $42,000 which was still owing.

On April 30, 2020, Kulari Ltd went into voluntary liquidation and you were appointed liquidator for the winding up.

The trial balance of Kulari Ltd as at March 31, 2020, is shown below.

KULARI LTD

Trial Balance

as at March 31, 2020

Debits

Inventories                                       $30,000

Plant - subject to hire purchase agreement with Dodgy Finance Co. Ltd             3,000

Other plant                                           24,000

Work in progress                                       12,240

Accounts Receivable                                   39,840

Retained Earnings                                         23,400

                                                                  $132,480

Credits

Share capital (80,000 shares issued for $1.00 and paid to 60c)                          $48,000

Darbai Bank                                                                                               42,000

Accounts Payable                                                                                         35,940

Long service leave payable to a retrenched employee                                            2,100

Local council rates payable                                                                               1,800

PAYG tax deductions from employees (to be remitted to the Australian Taxation Office)  600

Wages owing to Y. Young (two weeks to March 31, 2020, at $720 per week)               1,440

Amount still owing as retrenchment payment                                                          600

                                                                                                                 $132,480

• All assets were sold by you in your capacity as receiver, the proceeds of which amounted to $72,000. To achieve this, you had to spend $1,200 to complete the work in progress. Expenses of advertising and stocktaking amounted to $1,200.
• You made the appropriate payments from the receivership funds. After this was completed, you retired from the receivership. You were then appointed liquidator and proceeded with the distribution of funds in hand under the liquidation. Liquidator's expenses amounted to $600.

Required

Question (a) Prepare the Receiver's Receipts and Payments T-account.

Question (b) Prepare the final receipts and payments t-account of the liquidator.