Page 233 - DCOM205_ACCOUNTING_FOR_COMPANIES_II

Accounting for Companies – II

notes The assets realised the following sums:
Land & Buildings 40,000

Plant & Machinery 37,300
Fixture & Fittings 2,000
The liquidation expenses amounted to ` 2,000.
8. Temptation Limited went into voluntary liquidation on 31 December, 2010. The following
st
information is available with the liquidator:
Sundry Creditors amount to ` 1,51,320 of which ` 16,000 are preferential. 6% Debentures
carrying floating charge on the assets amounted to ` 1,60,000. Debenture-holders were
paid interest up to 30-6-2010.
The assets realised as follows:
Stock-in-Trade ` 1,68,000
Plant and Machinery ` 1,21,200

Cash-in-Hand stood at ` 1,000. Debentures were paid off on 30 June of the following
th
year with interest. Liquidator’s expenses amounted to ` 3,804 and they were entitled to
remuneration at 3% on the amount realised and 2% on the amount distributed to unsecured
creditors.
Prepare Liquidator’s Final Statement of Account.
9. Amod & Pramod Limited get into financial difficulties and on 31-3-2009 a Receiver was
appointed by the Debenture-holders under the terms of agreement which provided a
floating charge. A resolution of voluntary winding up was passed on April 30, 2009 when
a liquidator was appointed. The following is the summary of company’s position as on 31-
3-2009.

Balance sheet
liabilities ` assets `
400, 6% Preference Shares of ` 100 each
fully paid 2,00,000 Equity shares of ` 1 each, Fixed Assets 1,55,000
80 paise called up 1,60,000 40,000
Stock 1,22,460
10,000 shares 2,000 Debtors 42,730
1,58,000
5% Debentures 40,000 P & L Account 1,02,450
+ Interest Accrued 750 40,750
Bank Loan @ 5½ %p.a. 17,600
(Collaterally secured by depositing debentures
worth ` 20,000 ranking equally with the above)
Creditors 1,66,290
4,22,640 4,22,640
Creditors comprises as follows:
Local Taxes ` 296, Sales Tax ` 260, Managing Director’s Remuneration ` 2,400, Directors’
fees ` 6,000. Income tax ` 6,200 and Remaining Creditors ` 1,51,134. The Receiver collected
` 24,980 from debtors and sold some of the stock for ` 61,584. His expenses and remuneration

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