Page 225 - DCOM205_ACCOUNTING_FOR_COMPANIES_II

Accounting for Companies – II

Notes Pref. Capital 4,00,000
+ Dividend 24,000 4,24,000 9,32,600
Amount for Equity shareholders and liquidator’s
commission thereon. 13,400.00

13,400 ×2
Less: 2% Liquidator’s commission = 262.75
102
Amount for Equity shareholders 13,137.25

(iv) Loss to be borne by the Equity shareholders-
Total Equity capital (72,000+28,000) 1,00,000
Less: Amount available for equity Shareholders 13,137.25
Loss for Equity Shareholders 86,862.75

86,862.75
Loss per Equity Share = = 7.238 app.
8,000 + 4,000
Amount of call on per Equity Share of ` 7 = ` 7.238 – ` 7 = ` 0.238
Amount of refund per share of ` 9 = ` 9 – ` 7.238 = ` 1.762
Illustration 10 (Journal Entries in the Books of Purchasing Company)
Following was the Balance Sheet of Swadeshi Company Limited as on 31 March, 2010:
st
Liabilities ` Assets `
24,000 Fully paid Shares of Buildings 2,00,000
` 10 each 2,40,000 Machinery and Plant 80,000
Sundry Creditors 60,000 Stock 30,000
Bank Overdraft 56,000 Debtors 44,000
P&L A/c 2,000
3,56,000 3,56,000
There was voluntary liquidation of Swadeshi Company Limited and the assets were sold for
` 3,00,000. Its payment is made as under: (i) ` 1,20,000 in cash (which is sufficient to pay off
Creditors, Bank Overdraft and Liquidation Expenses of ` 4,000), (ii) ` 1,80,000 by allotment of
24,000 shares of ` 10 each of Videshi Company Limited which will be treated as ` 7.50 per share
paid up. Prepare Liquidator’s Final Statement of Account in the books of Swadeshi Co. Ltd. and
pass the Journal Entries in the books of Videshi Co. Ltd.
Solution

Swadeshi Company Limited
Liquidator’s Final Statement of Account
Receipts Estimated Value Payments Amount
Values Realised (`)
(`) (`)
Assets sold 3,54,000 3,00,000 Liquidation Expenses 4,000
Creditors (60,000+56,000) 1,16,000
Return to Contributories : 24,000
Shareholders @ ` 7.5 per shares 1,80,000
3,00,000 3,00,000

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