After paying off all creditors in a liquidation there is $21 655 available for shareholders.Preference share capital is $20 000 and ordinary share capital is $20 625.The amount of the deficiency to be borne by ordinary shareholders is:

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Quizplus · Accepted Answer

The deficiency for ordinary shareholders is calculated by subtracting the preference share capital from the available amount for shareholders: $21,655 - $20,000 = $1,655. The ordinary share capital is $20,625, so the deficiency is $20,625 - $1,655 = $18,970.

After Paying Off All Creditors in a Liquidation There Is