What will be the deficiency or surplus apportioned

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The details below were extracted from the accounting records of Scenic Ranges Ltd (a company in the process of liquidation).

100 000 $1 preference shares fully paid $100 000
200 000 $1 ordinary shares paid to 50 cents $100 000
Cash available (after payment of all creditors) $20 000

Assume that the constitution of Scenic Ranges Ltd states that in the event of liquidation, all shares are to rank equally, based on the number of shares held, in distributing any surplus or deficiency.

Problem 1: What will be the deficiency or surplus apportioned to preference shareholders?

Reference no: EM132969460

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