Page 190 - DCOM205_ACCOUNTING_FOR_COMPANIES_II

Unit 9: Fundamentals of Liquidation of Companies

5. Estimated losses now written off, or for which provision has been made for the purpose of Notes
preparing the statement (give particulars or annex schedule).
6. Other items contributing to deficiency or reducing surplus.
Items reducing deficiency (or contributing to surplus): `
7. Excess (if any) of assets over capital and liabilities on the ————19————
as shown in the Balance Sheet (copy annexed)
8. Net trading profits (after charging items shown in note below) for the period from the
———19———— to the date of statement.

9. Profit and income other than trading profits during the same period (give particulars or
annex schedule).
10. Other items reducing deficiency or contributing to surplus:
Deficiency/Surplus as shown by Statement of Affairs

Note as to Net Trading Profit and Losses: `
Particulars are to be inserted here (so far as applicable) of the items mentioned below,
which are to be taken to account in arriving at the amount of net trading profits or losses
shown in this account.
Provision for depreciation, renewals, or diminution in value of fixed assets:
Charge for Indian Income tax and other Indian taxation on profits.
Interest on debentures and other fixed loans, payments to directors made by the company
and required by law to be disclosed in the accounts.
Exceptional or non-recurring expenditure:
Less: Exceptional or non-recurring receipts `
Balance, being other trading profits or losses

Net trading profit or losses as shown in
Deficiency or Surplus Account above ---------------- `
Signature : Dated --------------- 20 ---------------

9.5.3 Procedure to Prepare Statement of Affairs

The following steps should be kept in mind while preparing the Statement of Affairs of a
company:
1. First, take all those assets of the company which are not specifically pledged. These assets
should be taken at their realisable value. It may be noted that calls-in-arrear on shares
should be taken under this list, but uncalled amount on shares is not included in this list.
2. If there in any surplus from the assets which were specifically pledged with the secured
creditors, this should be added to the realisable value of the assets not specifically pledged
calculated above (1).
3. Then from the total calculated above (2), first deduct the preferential creditors, then amount
payable to creditors having the floating charge (i.e., debentures) and then unsecured
creditors.

4. To calculate the amount of unsecured creditors, generally trade creditors, bills payable, bill
discounted likely to be dishonoured and unsecured portion from partly secured creditors
are taken.

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