Page 227 - DCOM205_ACCOUNTING_FOR_COMPANIES_II

Accounting for Companies – II

notes

Notes As there is a legal preference of the receiver for costs and remuneration and
preferential creditors over the payment of debenture-holders, they are paid off first.

liquidator’s final statement of account
receipts ` payments `
Surplus from Receiver 23,250 Liquidator’s Remuneration 625
Sundry Assets Realised 72,500 Liquidator’s costs 1,500
Unsecured Creditors:
Trade Creditors 10,000
Bank Overdraft 12,500 22,500
Return to Contributories:
Preference Capital 50,000
750 Equity shareholders @ ` 28.17
per share approximately 21,125
95,750 95,750

10.5 list B contributories

The shareholders who transferred partly paid shares (otherwise than by operation of law or by
death) within one year, prior to the date of winding up may be called upon to pay an amount (not
exceeding the amount not called up when the shares were transferred) to pay off such creditors
as existed on the date of transfer of shares.
Their liability will crystallise only
(i) When the existing assets available with the liquidator are not sufficient to cover the
liabilities;

(ii) When the existing shareholders fail to pay the amount due on the shares to the liquidator.
List B Contributories are following:
l z On the appointment of Liquidator, director’s position will stand automatically vacated and
the shareholders will be referred to as contributories.

l z Shareholders who have transferred that partly paid shares within one year earlier to date
of winding up will be placed in “B” List. Such contributories will be referred to as “B” List
of contributories.

l z Liquidator is expected to dispose the assets off to pay off liabilities. In case the disposal of
assets was not sufficient to discharge the liabilities, then the liquidator can claim from “A”
List of contributories towards their unpaid capital towards the company.

l z If “A” List of contributories are not meeting the liabilities, then liquidator can fall upon “B”
List of contributories to recover money towards unpaid portion of the capital.
l z The liquidator can fall upon only against transfer of partly paid shares effected during
within one year earlier to the date of winding up and transmission of shares will not come
under this purview.
l z If there were to be more than one such contributories, then the liability will be fixed against
that many contributories in the ratio in which they are expected to contribute towards the
capital.

222 lovely professional university