Page 192 - DCOM205_ACCOUNTING_FOR_COMPANIES_II

Unit 9: Fundamentals of Liquidation of Companies

Stock-in-trade 4,000 notes

Bad debts 4,000
The doubtful debts are ` 8,000 estimated to realise ` 4,000. The Bank Overdraft is secured by
the deposit of title deeds of leasehold properties. Preferential creditors for taxes and wages are
` 2,000. The telephone rent owing is ` 160.

Solution

statement of affairs of Jagmohan co. ltd.
as on 1 July, 2010
st
assets estimated realisable value `
Assets not specifically pledged as per List A:
Cash-in-hand 2,000
Book Debt 1,12,000
Calls-in-arrear 10,000
Investments 8,000
Stock-in-trade 4,000
Machinery 1,20,000
2,56,000

Assets Specifically Pledged as per List B
Estimated Due to secured Deficiency ranking Surplus carried to
realisable value creditors as unsecured last column
` ` ` `
Leasehold Properties 1,46,000 36,000 — 1,10,000
Estimated surplus from assets specifically pledged 1,10,000
Estimated total available for preferential creditors,
Debenture-holders secured by floating charge and unsecured creditors
3,66,000

summary of gross assets
` `
Gross realisable value of assets specifically pledged 1,46,000
Other assets 2,56,000
4,02,000
Estimated total assets available for preferential creditors, debenture-holders
secured by a floating charge and unsecured creditors
3,66,000
Gross Liabilities
Liabilities Secured creditors as per list B to the extent to which claims
` 36,000 are estimated to be covered by assets specifically pledged.
2000 Preferential Creditors as per list c 2000
Estimated balance of assets available for debenture-holders
secured by a floating charge and unsecured creditors 3,64,000

lovely professional university 187