Page 222 - DCOM205_ACCOUNTING_FOR_COMPANIES_II

Unit 10: Liquidation of Companies: Preparation of Accounts

Solution notes

satyam limited
liquidator’s final statement of account
receipts estimated value payments amount
values realised (`)
(`) (`)
Assets Realised 5,00,000 Liquidator’s Remuneration:
`
3% on ` 5,00,000 15,000
2% on ` 4,00,000 8,000 23,000
Liquidation Expenses 9,000
Payment to Preferential Creditors (for salary
and wages) 6,000
Payment to Unsecured Creditors 62,000
Preference Shareholders 1,50,000
Arrear of Preference Dividend for one year 9,000
Equity Shareholders 90,000
Payment of Surplus to

Preference Shareholders   1   50,333
 3 
 2 

Equity Shareholder   3 1,00,667 1,51,000

5,00,000 5,00,000
Working Note:
(1) Liquidator’s Commission on amount distributed to shareholders:

`

Assets Realised
5,00,000
Less: Liquidator’s Commission on

Assets Realised 15,000
Liquidation Expenses 9,000
Preferential Creditors 6,000
Unsecured Creditors 62,000 92,000

Amount for Shareholders and Liquidator’s Commission thereon. 4,08,000

Less: liquidator’s remuneration 4,08,000 ×2 8,000
102
Amount for both shareholders 4,00,000

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