Sox Ltd Has Two Classes of Ordinary Shares: 100 000

Multiple Choice

Sox Ltd has two classes of ordinary shares: 100 000 fully paid A ordinary shares (paid-up share capital $100 000) and 25 000 fully paid B ordinary shares (paid-up share capital $100 000) .The company was placed in liquidation.Liquidator's fees totaled $85 000, the assets were sold for $1 775 000 and these assets had a carrying amount of $1 600 000.
-Which of the following correctly shows the liquidation account of Sox Ltd?

A) $\begin{array}{lcc}& \text { Debit (\$) } & \text { Credit (\$) } \\\text { Assets }&1600000 \\\text { Receipts and payments account - assets sale } & &1775000 \\\text { Receipts and payments account - costs } & 85000 & \\\text { Members' distribution account } & 90000\end{array}$

B) $\begin{array}{lcc}& \text { Debit (\$) } & \text { Credit (\$) } \\\text { Assets }&&1600000 \\\text { Receipts and payments account - assets sale } & 1775000 \\\text { Receipts and payments account - costs } & 85000 & \\\text { Members' distribution account } && 90000\end{array}$


C) $\begin{array}{lcc}& \text { Debit (\$) } & \text { Credit (\$) } \\\text { Assets }&&1600000 \\\text { Receipts and payments account - assets sale } & 1775000 \\\text { Members' distribution account } &175000\end{array}$


D) $\begin{array}{lcc}& \text { Debit (\$) } & \text { Credit (\$) } \\\text { Assets }&&1600000 \\\text { Receipts and payments account - assets sale } & 1775000 \\\text { Members' distribution account } &&175000\end{array}$