Question

The XYZ Ltd., Bikaner went into voluntary liquidation as on 31st March, 2018.The Balance Sheet as on that date is as follows :

Balance Sheet as on 31st March.  2018

Liabilities	Rs.	Assets	Rs.
Share Capital:		Cash in Hand	10,000
• 15,000 Preference Shares of Rs. 10 each, fully paid up	1,50,000	Stock of Raw Materials	50,000
• 20,000 Equity Shares of Rs. 10 each, Rs. 7 paid up	1,40,000	Stock of Finished Goods	1,50,000
Secured Loan from Bank (Against pledge of Stock of Raw Materials)	38,000	Other Assets	1,45,000
Preferential Creditors	1,200	Profit and Loss	76,000
Unsecured Creditors	1,01,800
	4,31,000		4,31,000

The assets realised are as follows :
Stock of Raw Materials realised by Bank Rs. 30,000. Stock of Finished Goods Rs. 80,000 and Other Assets Rs.20,000. The liquidator is entitled to a fixed remuneration of Rs. 1,000 plus 3% of the assets realised by him only. The expenses of liquidation amounted to Rs. 11,000. Preference shares are preferential as regards capital repayment.
Show the Liquidator's Final Statement of Account.

Answer 1

Liquidator's Final Statement of Account of the Winding up of XYZ Ltd.,
Bikaner in Voluntary Liquidation, liquidated on 3151 March, 2018

Particulars (Receipts)	Rs.	Particulars (Payments)	Rs.	Rs.
To Cash Balance in Hand		By Liquidator's Remuneration :
To Amount realised on sale of	10,000	i) Fixed	1,000
assets:		ii) @ 3% on the asset realised by him (i.e. 3% of Rs.1,00,000)	3,000	4,000
i) Finished Goods	80,000	By Cost of Liquidation		11,000
ii) Other assets	20,000	By Preferential Creditors		1,200
To Call from Contributories	60,000	By Unsecured Creditors:
(CoIIected on 20,000 Equity Shares at Rs. 3 per share) (20,000 x Rs. 3)		i) Unsecured Creditors	1,01,800
		ii) Loan from Bank	8,000	1,09,800
		By Preference Shareholder		44,000
		(Balance amount paid on 15,000 Preference Shares `(Rs.44,000)/(15,000 shares)=Rs.2.933 `per share)
	1,70.000			1,70.000

Working Notes:

(i) It is necessary to call the uncalled money from Equity Shareholders since the claim of Preference Shareholders and Unsecured creditors remains to be satisfied . however the maximum amount that can be collected is upto the face value of equity shares , hence Rs.  3 per equtiy shares has been called up.