Question

The Balance Sheet Of sony Ltd.as on 31st march 2017 is as follows:

Liabillties	Rs.	Assets	Rs.
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
Sundry Creditors	90,000
Income Tax	4,000
	7,50,000		7,50,000

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.

Answer 1

Books of Sony Ltd.
Liquidator's Final Statement of Account

Particulars	Rs.	Rs.	Particulars	Rs.	Rs.
To Balance b/d		30,000	By Liquidation Expenses		8,000
To Assets Realised :			By Liquidator's Remuneration :
			2% on Assets Realised  `∴ (2/100xx4,50.000=9,000)`		11,700
Land and Building (2,40,000 - 1,00,000)	1.40,000		3% on Amount Distributed to Unsecured Creditors `∴(3/100xx90,000=2,700)`
Plant and Machinery	1,80,000		By Income Tax		4,000
Stock	70,000		By Sundry Creditors		90,000
Debtors	60,000	4,50,000	By 6% Debentures	1,00,000
			(+) Outstanding Interest	6,000	1,06,000
			By Preference Shareholders :
			Capital	1,00,000
			(+)Dividend (WNl)(In Arrears for 3 years)	18,000	1,18,000
			By Equity Shareholder - I		1,16,920
			- (Refund) (WN2)
			By Equity Shareholder - II		25,380
			-(Refund) (WN2)
		4,80,000			4,80,000

Working Notes :

( 1) Dividend : 6% on 1,000 shares of Rs.100 each
= 6 % of 1,00,000 = Rs. 6,000

But preference dividends are in arrears for 3 years
= Rs. 6,000 x 3 = Rs. 18,000

(2) Debit Side Total	4,80,000
(-)Credit Side Total	3,37,700
	1,42,300 (Surplus)
Now equity Share Capital - I →	2,00,000
(+) Equity Share Capital - II →	1.50.000
	3,50,000
(-) Surplus	1,42,300
	2,07,700

`therefore \text{(Rs.2,07,700)}/\text{(5000 Equity Shares)}`= Rs.41.54 per Equity Share

Equity Shareholder - I	Equity Shareholder - II
Rs. 100.00	Rs. 50.00
(-) Rs. 41.54	(-) Rs. 41.54
Rs.58.46	Rs. 8.46
x 2,000 →  Equity Shares	x 3,000 →  Equity Shares
Rs. 1,16,920 (Refund)	Rs. 25,380.00 (Refund)