In a liquidation which commenced on 11th November, 2017, certain creditors could not receive payments out of the realisation of assets and out of the contribution from 'A' list contributories. The following are the detai

CS Executive · Company Accounts & Auditing Practices · PYQS · December 2018
In a liquidation which commenced on 11th November, 2017, certain creditors could not receive payments out of the realisation of assets and out of the contribution from 'A' list contributories. The following are the details of certain transfer which took place in 2016 and 2017: Shareholders Number of Shares Transferred Date of Transfer Proportionate unpaid debts (₹) C 2,500 1st September, 2016 5,000 P 1,500 1st January, 2017 9,000 D 2,000 1st April, 2017 12,000 B 700 1st August, 2017 13,500 S 300 15th September, 2017 14,500 All the shares were ₹10 each, ₹5 paid up. Ignoring expenses of and remuneration to liquidators, show the amount to be realised from various persons listed above.

Answer & Explanation:

Amount to be realised from various persons listed above Creditors outstanding on the date of ceasing to be a member Shareholders and Share Transfer Amount to be paid to creditors ₹ P 1500 shares (₹) D 2000 shares (₹) B 700 shares (₹) S 300 shares (₹) ₹9,000 3,000 4,000 1,400 600 9,000 ₹3,000 - 2,000 700 300 3,000 ₹1,500 - - 1,050 450 1,500 ₹1,000 - - - 1,000 1,000 (a) Total ₹14,500 3,000 6,000 3,150 2,350 14,500 (b) Maximum liability of Shareholder 7,500 10,000 3,500 1,500 Amount to be realized (minimum of (a) or (b)) 3,000 6,000 3,150 1,500 Note: C will not be liable since he transferred his shares prior to one year preceding to date of winding up.

Topics: Company Accounts

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