Question

From the following information of Nageshwar Ltd. prepare Liquidator's final Statement of Account :

(a) Share Capital:

(i) 1,000 , 9% Preference shares of 100 each fully paid.
(ii) 20,000 Equity Shares of 10 each fully paid.
(iii) 20,000 Equity Shares of 10 each, 5 paid-up.

(b) 6% Debentures - Rs. 50,000 (having a floating charge on all assets).
(c) Creditors : Preferential Creditors - 10,000.
                       Unsecured Creditors - 60,000.
(d) The preference share dividend was in arrears for two years.
(e) The assets realised 3,00,000.
(f) Cost of winding up amounted to  7 ,000.

Answer 1

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

Particulars	Rs.	Particulars	Rs.
To Assets Realised	3,00,000	By Liquidation Expenses		7,000
To Equity Sbareholde -II (Call) (WN2)	31,500	By Liquidator's Commission (5 % on Rs. 3,00,000)		15,000
		By Preferential Creditors
		By 6% Debentures	50,000
		( +) Interest	3,000	53,000
		By Unsecured Creditors		60,000
		By Preference Shareholder:
		Capital	1,00,000
		(+)Dividend (WNl)	18,000	1,18,000
		By Equity Shareholder - I (Refund) (WN2)		68,500
	3,31.500			3,31.500

Working Notes :
(1) Dividend = 9% on 1,000 shares on Rs.100 each
= 9% 1,00,000 = Rs. 9,000
But, preference dividends are in arrears for 2 years
=9,000 x 2= Rs. 18,000

(2) Debit Side Total	3,00,000
(-) Credit Side Total	2,63,000
	37,000 (Surplus)
Now, Equity Share Capital -I →	2,00,000
(+) Equity Share Capital - II →	1,00,000
	3,00,000
(-) Surplus	37,000
	2,63,000

`therefore \text{(Rs.2,63,000)}/\text{(40,000 Equity Shares )}=
\text{6.575 Per Equity Share}
`

Equity Shareholder -I	Equity Shareholder - II
10.00	5.00
(-) Rs. 6.575	(-)Rs.6.575
3.425	Rs.1.575
x 20,000 Equity Shares	x 20,000 Equity Shares
'Rs.68,500 (Refund)	Rs. 31,500 (Call)