Page 201 - DCOM205_ACCOUNTING_FOR_COMPANIES_II

Accounting for Companies – II

notes Investment 12,000
Stock 6,000

Debtors 1,40,000
The bank overdraft is secured by deposit of title deeds of leasehold properties. There were
preferential creditors ` 3,000 which were not included in creditors ` 60,000.
Prepare a Statement of Affairs to be submitted to the meeting of members/creditors.

8. From the following particulars, prepare a Statement of Affairs and the Deficiency Account
for submission to the official liquidator of the Equipments Ltd., which went into liquidation
on March 31, 2010:
` `
3,000 Equity Shares of ` 100 each, ` 80 paid 2,40,000
11%; 1,000 Preference Shares of ` 100 each paid fully paid 1,00,000
Less: Calls-in-arrear (estimated to produce) 5,000 95,000

10% Debentures having a floating charge on the assets
(interest paid up to December 31, 2009) 1,00,000
Mortgage on Land and Buildings 80,000

Trade Creditors 2,65,500
Owing for Wages 20,000
Secretary’s salary @ ` 1500 p.m. owing 3,000
Managing Director’s salary @ ` 6000 p.m. owing 6,000
Assets Estimated to Produce Book Value
` `
Land & Buildings 1,30,000 1,20,000
Plant 1,30,000 2,00,000
Tools 4,000 20,000

Patents 30,000 50,000
Stock 74,000 87,000
Book Debts 60,000 90,000
Investment (in the hand of the bank for
an overdraft of ` 1,90,000) 1,70,000 1,80,000
On 31 March, 2005 the Balance Sheet of the company showed a General Reserve ` 40,000
st
accompanied by a debit balance of ` 25,000 in the Profit and Loss Account. In the year
2005-06 the company earned a profit of ` 40,000 and declared a dividend of 10% on equity
shares. Beside loss of stock due to fire of ` 40,000, the company suffered a total loss of
` 1,09,000 during 2006-07, 2007-08 and 2008-09. For 2009-10 accounts were not made up.
The cost of winding up is expected to be ` 15,000.

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