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Following is the Balance Sheet of P Ltd. as on 31-3-2017. - Financial Accounting(Financial Accounting and Auditing 9)

Following is the Balance Sheet of P Ltd. as on 31-3-2017.

Balance Sheet of P. Ltd. (31.3.2017)

Liabilities Rs. Assets Rs.
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  

Sundry Creditors

(On Mortgage of Plant & Machinery)

30,000 Stock  
Preferential Creditors 3,100 Debtors  
Unsecured Creditors 25,000 Cash in hand  
    Profit and Loss A/c  
  2.25.500   2.25.500

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.

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Solution

Books of P. Ltd.
Liquidator's Final Statement of Accounts

Particulars Rs. Rs. Particulars Rs. Rs.
To Balance b/d (Opening Cash)   500 By Liquidator's Remuneration   6,306
To Assets Realised:     (Working Note- 1)    
Land & Building 50,000   By Liquidation Expenses    2,730
Moulds 42,500   By Preferential Creditors   3,100

Plant & Machinery

( Rs.55,000 - Rs.30,000)

25,000   By Debentures 40,000  
Furniture 6,000   (+) Interest 3,600 43,600
Stock 21,000   (Working Note - 5)    
Debtors 10.500 1,55,000 By Unsecured Creditors (Working Note- 2)   25,900
      By Preference Shareholders  50,000  
      (+) Dividend (W. Note- 3) 4,000 54,000
      By Equity Shareholder (Refund on   19,864
      (Working Note -4)    
           
    1,55,500     1,55,500

:- Working Notes :
(1) Liquidator's Remuneration :

(a) 2% on Assets -Realised `(2/100xx1,85,000)= 3,700`

(+){b) 2% on Amount Distributed to Unsecured Creditors `(2/100xx29,000)=580`

(+) (c) 10 % on Amount realised to Equity Shares Holders`(10/110xx22,290)`

(2) Unsecured Creditors 
(+)Repair  Bill of Plant and Machinery 

25,000
900
                                            25,900 (Total Unsecured Creditors

(3) Preference Shares Dividend : `(8/100xx50,000 xx1\text{years})=4000`
(4) Debit (Total)    1,55,500
                            1,35,636 

                            1,9,864 - (Refund) 

(5) Debentures          
(+)  Outstanding
Debenture Interest                Rs.  40,000
(+) 6 monts interest accrued `(6/100 xx40,000xx6/12)= 1,200`

                                                                                  Rs. 43,600

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