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.
Solution
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) |
