Time Ltd. went into liquidation on 31st March, 2014 and its position on that date was as under: (i) 50,000, 10% Preference shares of ₹10 each fully paid (ii) 70,000 Equity shares of ₹10 each fully paid (iii) 60,000 Equit

Liquidator's Final Statement of Account Receipt Amount ₹ Payment Amount ₹ Cash 6,27,000 Calls in advance 17,000 Calls in Arrear 20,000 Preference Dividend 50,000 Contribution from Equity Shares of ₹5 each (₹1 per share) 60,000 Preference Shareholders 5,00,000 Equity Shareholders of ₹10 each (@ ₹2 per share) 1,40,000 7,07,000 7,07,000 Working Note: (i) Amount at Disposal ₹ Cash in Hand 6,27,000 Less: Payment of preference Dividend 50,000 Preference shareholders 5,00,000 Calls in Advance 17,000 60,000 Add: Calls in Arrear 20,000 80,000 Add: Amount to be received from Equity Shareholders of ₹5 each 1,20,000 Amount at Disposal 2,00,000 (ii) Number of Equivalent Equity Shares 70,000 Equity shares of ₹10 each = 1,40,000 shares of ₹5 each 60,000 Equity shares of ₹5 each = 60,000 shares of ₹5 each Total = 2,00,000 shares of ₹5 each Final payment to Equity Shareholders = Total amount at disposal/Total no. of equivalent shares = 2,00,000/2,00,000 = ₹1 per share Final payment to Equity Shareholders of ₹10 each = ₹2 per share Amount to be received from Equity Shareholders of ₹5 each = ₹2 per share Amount to be paid by Equity Shareholders of ₹5 each = ₹1 per share Final amount to be received from equity Shareholders of ₹5 each = ₹1 per share