Question

A Ltd went into voluntary liquidation on 31st December, 2017 when its Balance Sheet read as follows : 

Liabilities	Rs.	Assets	Rs.
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
Creditors	3,18,750
	17,43,750		17,43,750

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
Stock                                     Rs.1,50,000
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.

Answer 1

(i) Assets Realised :                   Rs.
Land and Buildings                    3,00,000
Plant and Machinery                  5,00,000.
(+) Patents                                  75,000
Stock                                          1,50,000
Sundry Debtors                          2,00,000
                                                12,25,000
(ii) Liquidator's Commission :
3% on            Rs.12,25,000 =  Rs.36,750
(iii) Dividend : 10% on 5,000 shares of Rs.100 each
`therefore 10/100xx5,000xx100=Rs.50,000`
And Preference dividends were in arrears for 2 years.
`therefore 5,000xx2=Rs.1,00,000`
(iv) Creditors: As per Balance Sheet, Creditors= 3,18,750
But Creditors included preferential creditors = Rs. 38,000
∴Creditors =  3,18,750- 38,000
                   =Rs. 2,80,750
(v)Debit Side Total → Rs.13,00,000
(-) Credit Side Total → Rs.12,70,250

                                  Rs. 29,750 (Surplus)

Equity Share Capital (1) →    Rs.1,87,500 
(+) Equity Share Capital (2) →  Rs.4,50,000

                                                  Rs . 6,37,500
                                                  Rs. 29,750 (Surplus)

                                                   Rs 6,07,750

`therefore (Rs.6,07,750)/(100\text{Equity Shares})`- Rs.'60.775 Per Share

Equity Shareholder (1)
                     Rs.75.000
(-)                 Rs.60.775
                    Rs. 14.225
(x)                 2,500 (Equity Shares)    
                     Rs. 35,563 (Refund)

Equity Shareholder  (2)
                       Rs.60.000
(-)                    Rs.60.775
                        Rs.0.775
(x)                     7,500 (Equity Shares)

   Rs.5,813 (Call)
Books of A Ltd.
Liquidator's Final Statement of Accounts (As on 30-6-2018)

Particulars	Rs.	Particulars		Rs.
To Bal. b/d	75,000	By Liquidator's Commission (WNii)		36,750
To Assets Realised (WNi)	12,25,000	By Liquidation Expenses		27,250
		By Preferential Creditors
To Equity Shareholder (2)	5,813	By 15% Debentures	2,50,000
(Call on 7,500 Equity Shares @ f 0.775 per share) (WNV)		(+) Outstanding Interest	37 ,500	2,87,500
		By Preference Shareholders:
		Capital	5,00,000
		( +) Dividend (WNiii)	1,00,000
		(2 years Arrears)		6,00,000
		By Creditors (WNiv)		2,80,750
		By Equity Shareholder -(1)		35,563
		(Refund on 2,500 Equity Shares @ Rs. 14.225 per share) (WNv)
	13,05,813			13,05,813