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Statement of Affairs and Deficiency Account Problems

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The following information is extracted from the books of Surabhi Ltd. on 31st July 2017 on which· date a winding up order was made.

Particulars Rs.
Unsecured Creditors  7,00,000
Salaries due for five months 40,000
Managing Director's Remuneration Due  60,000
Bills Payable 2,12,000
Debtors - Good 8,60,000
- Doubtful ( estimateci to produce Rs.1,24,000) 2,60,000
-Bad 1,76,000
Bills Receivable (Good Rs. 20,000) 32,000
Bank Overdraft 80,000
Land (estimated to produce Rs.10,00,000) 7,20,000
Stock (estimated to produce Rs.11,60,000) 16,40,000
Furniture and Fixtures 1,60,000
Cash in Hand 8,000
Estimated liabilities for bills discounted  1,20,000
Secured creditors holding first mortgage on land 8,00,000
Partly secured creditors holding second mortgage on land  4,00,000
Weekly wages unpaid 12,000
Liabilities under Workmen's Compensation Act, 1925  4,000
Income-tax due 16,000
10,000 9% Mortgage Debentures of RS.100 each Interest payable to 30th June  
and 31st December, paid to 30111 June 2017  10,00,000
Share Capital :  
40,000 10% Preference Shares of Rs.10 each 4,00,000
1,00,000 Equity Shares of Rs.10 each 10,00,000
General Reserve since 31st December, 2013 2,00,000

In 2013, the company earned profit Rs. 9,00,000 but thereafter it suffered trading losses totalling Rs.11,68,000.
The company also suffered a speculation loss of Rs.1,00,000 during the year 2014. Excise authorities imposed a penalty of' 7,00,000 in 2015 for evasion of tax which  was paid in 2016. From the foregoing information, prepare the Statement of Affairs and the Deficiency Account. 

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