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Kelly Mills Ltd was wound up on 22nd August 2020.
Kelly Mills Ltd
Trial Balance
as at 22nd August 2020

Debit
Credit
Cash
$46 800
Inventories
981 760
Plant and
equipment
1 099 280
Land and
buildings
312 000
Accumulated
losses
420 160
Accounts payable
$832 000
Alliance Bank
mortgage loan (secured on land and buildings)
208 000
Share capital: 1
820 000 ordinary shares issued for $1 each, fully paid
. .
1 820 000
$2 860 000
$2 860
000
The following information is relevant
(a) The assets were sold and realised the following cash amounts:
Inventories
$624 000
Plant and machinery
$728 000
(b) The Alliance Bank took possession of the land and buildings, sold them for $468 000 and after the debt was cleared paid any excess funds to the liquidator.
(c) Liquidation costs were $98 800.
(d) The liquidator paid all liabilities.
Required
Prepare the JOURNAL ENTRIES to wind up the affairs of Kelly Mills Ltd and to calculate any deficiency and distribution to the shareholders.
T accounts are NOT required.