Page 220 - DCOM205_ACCOUNTING_FOR_COMPANIES_II

Unit 10: Liquidation of Companies: Preparation of Accounts

Thus, 40,000 Equity shareholders will get 20,000 + 4,000 ` = 24,000 notes

24,000
Rate per Share = = ` 0.6
40,000
28,000 Equity shareholders will get ` 2,800

2,800
Rate of Dividend = = ` 0.1
28,000
Illustration 7 (Calls-in-Advance and Calls-in-Arrear on Shares)
Purohit Company Limited, having carried out its business objects, went into voluntary liquidation
with the following liabilities:
`
Trade Creditors 24,000

Bank Overdraft 40,000
Capital:
20,000 Preference Shares of ` 10 each, ` 7 called up 140,000
20,000 Equity Shares of ` 10 each, ` 9 called up 1,80,000
Less: Calls in arrear 4,000 1,76,000

Cash received in anticipation of calls:
On Preference Shares 48,000
On Equity Shares 8,000 56,000
The assets realised ` 4,00,000 and the expenses of liquidation amounted to ` 4,000. The calls-in-
arrear are recovered in full. The Preference Shareholders have no priority in the return of capital.
Prepare the Liquidator’s Final Statement of Account.
Solution

purohit company limited
liquidator’s final statement of account
receipts ` payments `
Assets Realised 4,00,000 Liquidation Expenses 4,000
Calls-in-arrear Unsecured Creditors

Recovered 4,000 (` 24,000 + ` 40,000) 64,000
Calls-in-advance paid
On Preference Shares 48,000
On Equity Shares 8000 56,000
Return to Contributories:
20,000 Preference Shares @ ` 6
per share 1,20,000
20,000 Equity shares @ ` 8 per share 1,60,000
4,04,000 4,04,000

lovely professional university 215