- Liquidator Remuneration
- Order of Payment
- Fully Paid-up Shares
- Partly Paid-up Shares
- Interesat on Debentures
- Preference Dividend
- Liability of Fully Secured Creditors
- Liability of Partly Secured Creditors
- Preferential Creditors
A Ltd went into voluntary liquidation on 31st December, 2017 when its Balance Sheet read as follows :
|Share Capital :|
|Issued and Subscribed Capital :||Land and Buildings||2,50,000|
|5,000, 10% Cumulative Preference Shares of Rs. 100 each fully paid||5,00,000||Plant and Machinery||6,25,000|
|2,500 Equity Shares of Rs. 100 each Rs.75 paid||1,87,500||Patents||1,00,000|
|7 ,500 Equity Shares of Rs.100 each Rs. 60 paid||4,50,000||Stock||1,37,500|
|15% Debentures||2,50,000||Sundry Debtors||2,75,000|
|(Secured by a floating charge)||Cash at Bank||75,000|
|Interest outstanding on Debentures||37,500||Profit and Loss A/c||2,81,250|
Preference dividends were in arrears for 2 years and creditors included preferential creditors of 38,000.
The assets realised as follows:
Land and Buildings Rs. 3,00,000
Plant and Machinery Rs. 5,00,000
Patents Rs. 75,000
Sundry Debtors Rs.2,00,000
The expenses of liquidation amounted to Rs.27,250. The liquidator is entitled to a commission of 3% on assets realised except cash Assuming the final payments including those on debentures is made on 30th June, 2018.
Prepare the Liquidator's Final Statement of Account.
The XYZ Ltd., Bikaner went into voluntary liquidation as on 31st March, 2018.The Balance Sheet as on that date is as follows :
Balance Sheet as on 31st March. 2018
|Share Capital:||Cash in Hand||10,000|
|• 15,000 Preference Shares of Rs. 10 each, fully paid up||1,50,000||Stock of Raw Materials||50,000|
|• 20,000 Equity Shares of Rs. 10 each, Rs. 7 paid up||1,40,000||Stock of Finished Goods||1,50,000|
|Secured Loan from Bank (Against pledge of Stock of Raw
|Preferential Creditors||1,200||Profit and Loss||76,000|
The assets realised are as follows :
Stock of Raw Materials realised by Bank Rs. 30,000. Stock of Finished Goods Rs. 80,000 and Other Assets Rs.20,000. The liquidator is entitled to a fixed remuneration of Rs. 1,000 plus 3% of the assets realised by him only. The expenses of liquidation amounted to Rs. 11,000. Preference shares are preferential as regards capital repayment.
Show the Liquidator's Final Statement of Account.
From the following information relating to Ratan Ltd., prepare Liquidator's Final Statement of Account .
(1) Share Capital :
(a) 800 Preference shares of Rs. 100 each fully paid.
(b) 35,000 Equity (A) Shares of Rs.10 each fully paid.
(c) 30~000 Equity (B) Shares of Rs.10 each,Rs. 7 paid-up.
(d) 20,000 Equity (C) Shares of Rs.5 each, Rs. 2 paid-up.
(2) Debentures of Rs. 70,000.
(3) Creditors of Rs. 50,000 unsecured, Creditors Rs.10,000 preferential.
(4) Assets realised Rs. 3,10,000.
(5) Liquidator's remuneration is 5% on assets realized, liquidation expenses were Rs. 6,600 and legal charges were Rs. 2,900.
The Balance Sheet Of sony Ltd.as on 31st march 2017 is as follows:
|Share Capital :||Land and Building||2,00,000|
|(i) 1,000, 6% Preference Shares of Rs . 100 each||1,00,000||Plant and Machinery||2,20,000|
|(ii) 2,000 Equity Shares of Rs.100 each fully||2,00,000||Stock||1,00,000|
|(iii) 3,000 Equity Shares of Rs.100 each,Rs . 50 paid||1,50,000||Debtors||1,00,000|
|6% Debentures||1,00,000||Cash at Bank||30,000|
|(Floating charge on all assets)||Preliminary Expenses||40,000|
|Interest outstanding on Debentures||6,000||Profit and Loss A/c||60,000|
|Bank Loan (Mortgage on Land and Building)||1,00,000|
The company went into liquidation on 31st March, 2017. The preference dividends were in arrears for three years. The arrears are payable on liquidatio The assets were realised as follows :
Land·anci Building Rs.2,40,000, Plant and Machinery Rs. 1,80,000, Stock Rs. 70,000, and Debtors ' Rs. 60,000. The expenses of liquidation amounted to Rs. 8,000.
The liquidator is entitled to remuneration at 2% on all assets Realised and 3% on amount distributed to unsecured creditors.
All payments were made on 1st October, 2017 .
Prepare Liquidator's Final Statement of Account.
From the following information of Nageshwar Ltd. prepare Liquidator's final Statement of Account :
(a) Share Capital:
(i) 1,000 , 9% Preference shares of 100 each fully paid.
(ii) 20,000 Equity Shares of 10 each fully paid.
(iii) 20,000 Equity Shares of 10 each, 5 paid-up.
(b) 6% Debentures - Rs. 50,000 (having a floating charge on all assets).
(c) Creditors : Preferential Creditors - 10,000.
Unsecured Creditors - 60,000.
(d) The preference share dividend was in arrears for two years.
(e) The assets realised 3,00,000.
(f) Cost of winding up amounted to 7 ,000.
Delux Ltd. went into liquidation on 31-3-2017.
The Balance sheet as on that date was as under :
Balance Sheet as on 31-3-2017
|Share Capital :||Freehold Property||80,000|
|Issued and Subscribed||Plant and Machinery||69,000|
|(i) 8,000 8% Preference shares of Rs. 10 each.||80,000||Stock||75,000|
|(ii) 12,000 Equity Shares of Rs. 10 each||1,20,000||Cash in hand||1,000|
|5% Debentures (Secured on Freehold Property)||60,000||Debtors||55,000|
|Income Tax||4,000||Profit and Loss||79,000|
(a) The interest on debentures were paid upto 31-3-2017.
(b) Preference dividend were in arrears for two years.
( c) The assets realised were as follows :
Freehold property Rs. 1,60,000, Plant and Machinery Rs.62,000, Stock Rs. 73,000 and Debtors Rs. 50,000.
(d) The expenses of liquidation amounted to Rs. 5,000, and liquidators remuneration was fixed at Rs.1,500 plus 2% on all assets realised except cash.
(e) The creditors include the preferential creditors which amounted to Rs.5,000.
Prepare the Liquidato's Final Statement of Account.
Following is the Balance Sheet of P Ltd. as on 31-3-2017.
Balance Sheet of P. Ltd. (31.3.2017)
|Share Capital :||Land and Building|
|500 8% Preference· Shares of Rs.100 each||50,000||Plant and Machinery|
|1,500 Equity Shares of Rs.100 each, Rs.50 paid-up||75,000||Furniture|
|6% Debentures (having a floating charge on all assets)||40,000||Fittings|
|Outstanding Debenture Interest||2,400||Moulds|
(On Mortgage of Plant & Machinery)
|Unsecured Creditors||25,000||Cash in hand|
|Profit and Loss A/c|
The Company went into Voluntary Liquidation as on above Balance Sheet date. Preference dividend was in arrears for one year and as per the articles of the Company it was to be paid .
The liquidator realised the assets are as follows :
Land and Building Rs. 50,000, Plant and Machinery Rs. 55,000, Moulds Rs. 42,500 Furniture Rs. 6 000 Stock Rs.21 000 and Debtors Rs.10,500. Fittings were worthless. The liquidation expenses amounted to . Rs. 2,730 The liquidator is entitled to remuneration at 2% on the assets realised, 2% on the amount distributed to unsecured creditors, and 10% on the amount realised to equity shareholders .
In addition to the above liabilities, the liquidator had to pay Rs. 900 as repairs bill of plant and machinery.
The liquidator made payments on 30-9-2017.
Prepare Liquidator's Final Statement of Account.
Following was the Balance Sheet of Janata Ltd. as on 31 si December, 2017.
|Share Capital :||Goodwill||2,24,000|
|2,000 8% Preference Shares of Rs.100 each fully paid||2,00,000||Land and Building||4,36,000|
|4,000 Equity Shares of Rs. 100
each Rs. 80 paid-up
|3,20,000||Plant and Machinery||1,80,000|
|6,000 Equity Shares of Rs. 100,each Rs. 70 paid-up||4,20,000||Furniture||20,000|
|8% Debentures (having a floating charges on all assets)||2,00,000||Office Equipments||40,000|
|Cash in Hand||16,000|
|Profit and Loss A/c||1,40,000|
The company went into voluntary liquidation as on that date :
(a) The preference dividend was in arrears for 3 years and as per the ides it was to be returned before returning Equity Capital.
(b) Sundry creditors include a loan of Rs. 80,000 secured on the hypothecation of Plant and Machinery and Preferential creditors of Rs.20,000
(c) The Liquidator realised the assets as follows :
Land and building Rs. 4,30,000, Plant and Machinery Rs. 1,00,000, Office Equipment Rs. 25,000, Furniture Rs. 16,000, Stock Rs. 1,40,000, Debentures Rs. 1,20,000, and Bills Receivable Rs. 28,000.
(d) Legal charges on Liquidation amounted to Rs. 2,000. The Liquidation Expenses were Rs. 5,200. The Liquidator's remuneration was fixed at Rs. 2,000 plus, 2% on sale of assets, plus 4 % on the amount distributed to unsecured creditors.
(e) There was a typewriter which was completely written off from the books of accounts but liquidator sold it for Rs.1,000 which was not included in the amount of office equipment above.
Prepare Liquidator's Statement of Account if the amounts were paid on 31 at March, 2018.