Advertisement Remove all ads

The Balance Sheet of Sony Ltd.As on 31st March 2017 is as Follows: - Financial Accounting(Financial Accounting and Auditing 9)

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.

Advertisement Remove all ads

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)
  Is there an error in this question or solution?
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×