A Limited Liability Company which has a paid-up share capital of ₹5,00,000 and a loss of ₹5,57,000 standing in its Balance Sheet went into voluntary liquidation on 31st March, 2019. The following are the particulars of i

CS Executive · Company Accounts & Auditing Practices · PYQS · December 2020
A Limited Liability Company which has a paid-up share capital of ₹5,00,000 and a loss of ₹5,57,000 standing in its Balance Sheet went into voluntary liquidation on 31st March, 2019. The following are the particulars of its Assets and Liabilities as on that date: Machinery, Stock and Debtors (which realised their book value) ₹3,95,000; Cash ₹5,000; Creditors ₹2,00,000; 6% Debentures carrying a floating charge of ₹2,50,000 and interest accrued thereon for one year. The Debentures were paid off with interest upto 31st March, 2019, on which date the final amount was also paid to the creditors. Creditors for ₹25,000 were preferential and the rest unsecured. The cost of liquidation amounted to ₹2,500. The Liquidator is entitled to 3% on the amount realised including cash and 2% on the amount distributed to the unsecured creditors by way of his own remuneration. Prepare the Liquidator's Final Statement of Account.

Answer & Explanation:

Liquidator's Final Statement of Account Receipts Amount Realised ₹ Payment Amount Paid (₹) Asset Realised Liquidator's Remuneration: 3% on ₹400000 = 12000 Cash 5000.00 2% on ₹25000 (Note 1) = 500 Machinery, stock and Debtors 395000.00 2% on ₹93137.25 = 1862.75 14362.75 Cost of liquidation 2500.00 Debenture (including interest upto 31.3.2019) 265000.00 Preferential creditors 25000.00 Unsecured Creditors 93137.25 Total 400000.00 Total 400000.00 Working Note: Liquidation's Remuneration on amount distributed to unsecured creditors will be calculated as follows: = (2 / 102 x 95000) = ₹1862.75 Total Amount Realised = 400000 Less: Amount paid upto Preferential creditors = (305000) (12000+500+2500+265000+25000) = 95000 Note 1: It is assumed that liquidator will get remuneration @ 2% on payment made to preferential creditors also considering it as a part of unsecured creditor.

Topics: Company Accounts

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