Question

The fallowing particulars were extracted from the books of XYZ Ltd. as on 31st March, 2017 on which day a winding-up order was made.

Particulars	Rs.
Equity Share Capital:
20,000 shares of Rs10 each, Rs 5 paid-up	1,00,000
14% pref  share capital -
20,000 shares of Rs.10 each, fully paid	2,00,000
14% mortgage debentures, secured by a floating charge upon whole of the  assets of the company exclusive uncalled capitaL	1,50,000
Fully secured Creditors (value of securities Rs.35,000)	30,000
Partly secured Creditors (value of securities Rs. 10,000)	20,000
Preferential Creditors for Rates, Taxes, Wages etc	6,000
Bills Payable	1,00,000
Unsecured Creditors	70,000
Bank overdraft	10,000
B/R in hand	15,000
Bills Discounted (One bill of Rs.10,000 known to be bad)	40,000
Book Debts : (i) Goods	10,000
(ii) Doubtful (estimated to produce 50%)	7,000
(iii) Bad	6,000
Land and Building (estimated to produce Rs. 1,00,000)	1,50,000
Stock in-Trade (estimated to produce Rs. 40,000)	50,000
Machinery, tools etc. (estimated to produce Rs. 2,000)	5,000
Cash-in-hand	100

You are require to prepare
(a) A statement of Affairs 
(b) Deficiency Account.

Answer 1

Statement of Affairs of X Ltd. as on 1-4-2017

Assets not specifically pledged (as per List 'A') :	Estimated Realisation  Value(Rs)
Cash	100
Bills Receivable	15,000
Sundry Debtors	13,500
Stock	40,000
Land and Buildings	1,00,000
Machinery and Tools	2,000

Assets specifically pledged (as per List 'B'):

	Estimated Realisable Value(Rs)	Due to Secured Creditors(Rs)	Deficiency ranking as unsecured (Rs)	Surplus carried to last column (Rs)
Securities	35,000	30,000	-	5,000
Securities	10,000	20,000	10,000	-
	45,000	50,000	10,000	5,000
Estimated Surplus from Assets specifically pledged				5,000
Estimated total assets available for pref.creditors,debentureholders				1,75,600

Secured by a floating charge, and unsecured creditors (carried forward
Summary of Gross Assets 
Gross realisable value of assets specifically pledged= 45,000

Other Assets                                                               (+)1,70,600

    Gross Assets                                                            2,15,600

Estimated total assets available for preferential creditors,
debentureholders secured by a floating charge, and unsecured creditors Rs. 1,75,600 (brought forward) 

Gross  Liabilities	Liabilities	Rs.	Rs.
40,000	Secured Creditors (as per List - B) to the extent to which claims are estimated to be covered by assets specifically pledged.		1,75,600
6,000	Preferential Creditors (as per List 'C') Estiμiated balance of  assets available for debentureholders secured by a floating charge, and unsecured creditors.		6,000 1,69,600
1,50,000	Debentureholders secured by a floating charge. (as per List D')		1,50,000
	Estimated Surolus as regards Debentureholders		19.600
2,00,000	Unsecured. Creditors as per List 'E':
	Unsecured Creditors	70,000
	Estimated unsecured balance of claims of creditors partly secured on specific assets brought forward	10,000
	Bills Payable	1,00,000
	Bank Overdraft	10,000
	Bills Discounted	10,000	2,00,000
3,96,000	Deficiency ,as regards creditors (being the difference between Gross Liabilities and Gross Assets)		1,80,400
	Issued and Called Up Capital :
	20,000 Pref.. Shares of Rs. 10 each, fully as per List 'F'.	2,00,000
	20,000 Equity Shares of Rs.10 each, Rs .5 called up and paid up as per List 'G'.		3,00,000
	Estimated Deficiency as regards Members		4,80,400

List 'H' - Deficiency Account

Items contributing to Deficiency :	Rs.
Excess of Capital and Liabilities over assets as on 1-4-2017 as	3,97,900
shown by the Balance Sheet	Nil
Net Dividend and Bonus declared during the period	Nil
Net Trading Losses for the same period	Nil
Losses other than Trading Losses written off or for which provision has been made in the books during the same period. Estimated losses now written-off or for which provision has been made for the purpose of preparing the statement
Bills Discounted                            10,000
Sundry Debtors                            9,500
Land and Buildings                      50,000
Stock                                            10,000
Machinery                                    3,000
	82,500
Deficiency as shown by the Statement of Affairs	4,80,400

Balance Sheet of X Ltd .as on 1-4-2017

Liabilities		Assets
Pref. Share Capital	2,00,000	Land and Builrung	1,50,000
Equity Share Capital	1,00,000	Machinery	5,000
Debentures	1,50,000	Securities in the Hands of Creditors	45,000
Secured Creditors	50,000	Stock	50,000
Pref. Creditors	6,000	Sundry Debtors	23,000
Bills Payable	1,00,000	Cash	100
Unsecured Creditors	70,000	Bills Receivable	15,000
Bank Overdraft	10,000	Excess of Liabilities and Capital over assets	3,97,900
	6,86,000		6,86,000