At the start of 2010, Hot Ltd entered into the following transactions in an endeavour to sustain its operation:(a) It borrowed ￡50,000 from Ina, secured by a floating charge. The floating charge was created on 1 April and it was registered on 15 April;(b) It borrowed a further ￡50,000 from Jo. This loan was secured by a floating charge created on 3 April and registered on 12 April;(c) It borrowed ￡100,000 from Ko-Bank. This loan was secured by a fixed charge. It was created on 5 April and was registered on 16 April.Unfortunately, the money borrowed was not sufficient to sustain Hot Ltd and, in August 2013, compulsory liquidation proceedings were begun. It is extremely unlikely that there will be sufficient assets to pay the debts owed to all of the secured creditors.Required:Advise Hot Ltd as to the order of security and payment of the above debts and explain why they are placed in that order. (10 marks)
