Question

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.

Answer 1

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