Question

Bunny Ltd went into voluntary liquidation on 30 June 2020. Its summarised statement of financial position at that date is as follows:

Bunny Ltd Statement of Financial Position As at 30 June 2020
Equity		Current assets
Share capital	59 000	Cash	10 000
		Inventory	13 000	23 000
		Non-current assets
		Land		42 000
		Total assets		65 000
		Current liabilities
		Payables		6 000
Total equity	59 000	Net assets		59 000

All assets realised amounted to $55 000. Payables allowed a $1000 discount. Costs of liquidation were $2 000.

Required

1. Complete the journal entries to liquidation.                     (15 ½ marks)
2. Record the entries in the Liquidation account, the Liquidators receipts & payments, and the Shareholders distribution account.           (9 ½ marks)

Answer journal for question 4 part (i)

Use the worksheet below to show your adjusting consolidation journal entries at 30 June 2020, narrations are required: Add rows to the answer table if required.

Question 4 part (ii) is answered on the next page

Answer 1