Page 215 - DCOM205_ACCOUNTING_FOR_COMPANIES_II

Accounting for Companies – II

notes Working Note
(1) Payment to Unsecured Creditors `

Unsecured Creditors 7,716
Balance of Partly Secured Creditors (2,918-1,800) 1,118
Bank Overdraft (unsecured) 116
Preferential Creditors (which are also unsecured) 405
9,355

9,355 ×2
(2) Liquidator’s Remuneration= ` 187.10
100
(3) Amount realised by the Liquidator ` =10,000 + 1,800 ` 11,800

9,355 ×2
(4) Dividend Rate for shareholders = ` 0.07775
100
Illustration 3 (Interest on Debentures)
Vinijya Ltd. which has a paid up capital of ` 1,00,000 and a loss of ` 1,11,500 standing on its Balance
Sheet went into voluntary liquidation on 31 March, 2010. The following are the particulars with
st
regard to its assets and liabilities as on that date: Machinery, Stock and Debtors (which realise
their book value) ` 79,000; Cash ` 1,000, Creditors ` 40,000, 6% Debentures (which were carrying
the floating charge) and interest accrued thereon for 6 months ` 1,500.
The above debentures were paid off with interest on 30 September, 2010. On this date, a first and
th
final dividend was also paid to the creditors. ` 5,000 of the creditors are preferential and rest are
unsecured. The cost of liquidator amounted to ` 500. The liquidator is entitled to 3% of the total
amount realised from the sale of assets including cash and 2% of the amount distributed to the
unsecured creditors by way of his own remuneration. Prepare the Liquidator’s Final Statement
of Account.

Solution
vinijya limited
liquidator’s final statement of account
receipts amount payments amount
` `
Assets Realised: Cost of Liquidation 5,000
Machinery, Stock and Liquidator’s Remuneration:
Debtors 79,000 3% on ` 80,000 2,400
Cash 1,000 2% on ` 5,000 100
2% on ` 20,098.04 401.96 2,901.96
6% Debentures 50,000
+ Interest Accrued 1,500 51,500
Preferential Creditors 5,000
Unsecured Creditors 20,098.04
80,000 80,000

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