ADVANCED CORPORATE ACCOUNTING.

B. COM NOTES.
PREPARED BY:
ABHISHEK D K.
M. COM., (B. ED.,).

1. B.COM4
TH
SEMESTER.
ADVANCEDCORPORATEACCOUNTING.
1
ABHISHEKDK,COMMERCELECTURER.
UNIT4:
LIQUIDATIONOFCOMPANIES:
Liquidator:
Whenthereisliquidationofacompany,oneormorepersonsarerequiredtobeappointed
speciallyforconductingtheliquidationorwindingupproceedingsofthecompany.Sucha
person/sarecalledLiquidator/s.
Theliquidatorappointedbythecourtaswellasthemembersandcreditorsmaytogether
functionasliquidators.
FunctionsofaLiquidator:
1.Torealisetheassetsofthecompany.
2.Tocollectthemoneyduefromcontributories.
3.Todistributetheamountrealizedfromsaleofassetsandamountreceivedfrom
contributoriesintheorderofpreferenceasperRule329ofCompaniesAct.
4.Tomaintainandsubmittherecordofreceiptsandpaymentsofcashtothemembersin
caseofvoluntarywindingupandtothecourtincaseofcompulsorywindingup.
Liquidation:
Liquidationorwindingupofacompanymeansthetermination(closingdown)ofthelegal
existenceofacompany.
Undersuchcircumstances,theassetsofthecompanyaredisposedoffandthedebtsarepaid,
outoftheamountrealisedfromassetsorfromthecontributionsmadebythemembersand
thesurplus,ifany,isdistributedamongmembersinproportiontotheirholding.
Typesofwindingupofacompany:
1.Compulsorywindingupbythecourt.
2.Voluntarywindingup:
a.Member’svoluntarywindingup.
b.Creditor’svoluntarywindingup.
3.Voluntarywindingupunderthesupervisionofthecourt.
1.CompulsoryWindingup:
Itcantakeplacewhenthecompanyisdirectedtobewound-upbyanorderofcourt.

2. B.COM4
TH
SEMESTER.
ADVANCEDCORPORATEACCOUNTING.
2
ABHISHEKDK,COMMERCELECTURER.
Grounds(circumstances/situations)forcompulsorywindingupofacompany(Section
433):
1.Ifthecompanyhasby-specialresolutionresolvedthatthecompanybewoundupby
thecourt.
2.Ifthecompanydoesnotcommenceitsbusinesswithinayearfromitsincorporation.
3.Ifadefaultismadeindelivery,thestatutoryreportoftheRegistrarofCompaniesor
inholdingthestatutorymeetingofthecompany.
4.Ifthenumberofmembersfallsbelow7incaseofpubliccompanyandbelow2in
caseofprivatecompany.
5.Ifthecompanyisunabletopayitsdebts.
6.Ifthecourtisoftheopinionthatitisjustandequitablethatthecompanyshouldbe
woundup.
2.VoluntaryWindingup:
Acompanycanbewoundupvoluntarilyunderthefollowingcircumstances:
1.ByanordinaryResolution:
a.Wherethedurationofthecompanywasfixedbythearticlesandtheperiodhas
expired;and
b.Wherethearticlesprovidedforwindingupontheoccurrenceofanyeventandthe
specifiedeventhasoccurred.
2.ByaSpecialResolution:
Whenaresolutionispassedbythemembersinallothercasesforvoluntarywinding
up,itmustbenotifiedtothepublicbyanadvertisementintheOfficialGazetteandin
newspapers.
TypesofVoluntaryWindingup:
1.Member’svoluntarywindingup:
Atthetimeofwindingupifthecompanyisasolventcompanyi.e.,abletopayits
debtsandDirectors,makeadeclarationtothateffect,itiscalledaMember’s
VoluntaryWindingup.
2.Creditor’svoluntarywindingup:
WhenthedeclarationofsolvencyisnotmadeandfiledwiththeRegistrar,itmaybe
presumedthatthecompanyisinsolvent.Inthatcase,thecompanymustcalla
meetingofitscreditorsforpassingtheresolutionforwindingup.

3. B.COM4
TH
SEMESTER.
ADVANCEDCORPORATEACCOUNTING.
3
ABHISHEKDK,COMMERCELECTURER.
3.VoluntaryWindingupundertheSupervisionoftheCourt:
Atanytimeafteracompanyhaspassedaresolutionforvoluntarywindingup,the
courtmakesanorderthatthevoluntarywindingupshallcontinue,butsubjecttosuch
supervisionofthecourtandwithsuchlibertyforcreditors,contributoriesorothersto
applytothecourtandgenerallyonsuchtermsandconditionsasthecourtthinksjust.
Thistypeofliquidationiscalled“voluntarywindingupunderthesupervisionofthe
court”.
Contributory:
Section428ofCompaniesAct,“everypersonisliabletocontributetotheassetsofa
companyintheeventofitswoundupandincludestheholderofanyshareswhicharefully
paidupandalsoanypersonallegedtobeacontributory”.
PreferentialCreditors:
PreferentialCreditorsarethoseunsecuredcreditorswhoonaccountofprovisionof
CompaniesActhavepriorityofpaymentovertheotherunsecuredcreditors.
SecuredCreditors:
SecuredCreditorsarethosecreditorswhoaresecuredbysomespecificassetofthecompany.
WhatisaLiquidatorsFinalStatementofAccounts?Howitisprepared?
Thestatementpreparedtorecordalltheassetsrealizedanddischargeofliabilitiesbythe
liquidatoratthetimeofwindinguporliquidationofthecompanyiscalledliquidatorsfinal
statementofaccounts.
Itispreparedaftertheaffairsofthecompanyarefullywoundup.
OrderofPayment:
Theliquidatormustmakepaymentsinthefollowingorder:
1.SecuredCreditors.
2.Legalexpenses(includingliquidationexpensesandcostofwindingup).
3.Liquidator’sremuneration.
4.Paymentstodebentureholdersandothercreditorshavingfloatingchargeontheassets
ofthecompany.
5.PaymentstoPreferentialCreditors.
6.PaymentstoUnsecuredCreditors.
7.Callsinadvance,ifany.

4. B.COM4
TH
SEMESTER.
ADVANCEDCORPORATEACCOUNTING.
4
ABHISHEKDK,COMMERCELECTURER.
8.Arrearsofdividendsoncumulativepreferenceshares.
9.Amountduetopreferenceshareholders.
10.Amountduetoequityshareholders.
FormatforthepreparationofLiquidator’sFinalStatementofAccount:
Receipts Rs. Payments Rs.
Cashinhand
CashatBank
AssetsRealised:
Marketable
Securities
BillsReceivables
TradeDebtors
LoansandAdvances
Stockintrade
WorkinProgress
Land&Building
Plant&Machinery
Furnitureandfixtures
Patents,trademarks,
etc.
Investments,etc.
Surplusrealisedfrom
SecuredCreditors(if
any)
Callsinarrears
Amountreceived
fromcallsonshares
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
Securedcreditors
Legalcharges(includingliquidation
expenses)
Liquidator’sRemuneration
Otherexpensesonliquidation
Debentureholders:
Outstandinginterestondebenture
Debentures
PreferentialCreditors
UnsecuredCreditors
Callsinadvance,ifany
ArrearsofDividendonCumulative
PreferenceShares
PreferenceShareholders
EquityShareholders
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX XXX

5. B.COM4
TH
SEMESTER.
ADVANCEDCORPORATEACCOUNTING.
5
ABHISHEKDK,COMMERCELECTURER.
Problems:
1.Thefollowingparticularsrelatestoalimitedcompanywhichhasgoneintovoluntary
liquidation.Youarerequiredtopreparetheliquidator’sfinalaccountsallowingfor
hisremunerationat2%onamountrealized,2%onamountdistributedtounsecured
creditorsotherthanpreferentialcreditors.
PreferentialCreditors10,000Rs.
UnsecuredCreditors32,000Rs.
Debentures10,000Rs.
Theassetsrealizedthefollowing:
LandandBuilding20,000Rs.
PlantandMachinery18,650Rs.
FixturesandFittings1,000Rs.
Liquidationexpenses1,000Rs.
2.PrakashLimitedwentintoliquidationon31/12/18.Followinginformationis
availablewiththeliquidator.Creditorsamountedto75,660Rs.Ofwhich8,000Rs.
arepreferential.Debentureshavingafloatingchargeontheassetsofthecompany
amountedto80,000Rs.debenturestobepaidinterestupto30
th
June2019.The
assetsrealizedasfollows:
Stock84,000Rs.
PlantandMachinery60,000Rs.
Cashinhand500Rs.
Debentureswerepaidoffon30
th
June2019withinterest.
Liquidatorsexpenses1,902Rs.andheisgivenaremunerationat3%onamount
realizedand2%onamountdistributedtounsecuredcreditorsexcludingpreferential
creditors.
PrepareLiquidatorsFinalStatementofA/c.
3.Fromthefollowingdetails,prepareLiquidatorsFinalStatementofA/c:
Assets Rs.
LandandBuilding
PlantandMachinery
Furniture
StockandDebtors
6,00,000
3,60,000
1,20,000
80,000

6. B.COM4
TH
SEMESTER.
ADVANCEDCORPORATEACCOUNTING.
6
ABHISHEKDK,COMMERCELECTURER.
Cash 10,000
Liabilities Rs.
Debentures
Creditors
8,00,000
4,60,000
TheassetsotherthanLandandBuildingrealized10%lessandLandandBuildingrealized
25%more.Liquidationexpenses5,000Rs.Liquidatorsremunerationis2%onassets
realizedand3%onamountdistributedtounsecuredcreditors.
4.Lucklesscompanywentintovoluntaryliquidationon31/12/18,wherethestatement
ofaffairswasasbelow:
Unsecuredcreditorswas4,00,000Rs.including50,000Rs.preferentialclaims.
SecuredcreditorssecuredonPlantandMachinerystoodat2,00,000Rs.Cashinhand
was10,000Rs.LiquidatorsrealizedPlantandMachineryfor1,50,000Rs.andthe
otherassetsrealized1,00,000Rs.Theliquidationexpensescameto10,000Rs.and
theliquidatorsremunerationwasfixedat4%oftheamountrealizedincludingcash
balanceand2%oftheamountdistributedtounsecuredcreditorsincluding
preferentialcreditors.PrepareliquidatorsFinalStatementofA/cshowingthe
distributionofcash.
5.CalculateLiquidatorsremuneration:
a.Balanceofcashafterpayingpreferentialcreditors4,10,000Rs.
b.Otherunsecuredcreditors4,78,000Rs.
c.Liquidatorsremuneration3%ontheamountpaidtootherunsecuredcreditors.
Also,statetheamountpaidtounsecuredcreditors.
6.BadLuckLimitedwentintoliquidation.Itsassetsrealized1,75,000Rs.excluding
theamountrealizedbysaleofsecuritiesheldbythesecuredcreditors.Thefollowing
wastheposition:
ShareCapital500sharesof100Rs.each.
Securedcreditors(Securitiesrealized20,000Rs.)17,500Rs.
Preferentialcreditors3,000Rs.
Unsecuredcreditors70,000Rs.
Debentureshavingafloatingchargeontheassetsofthecompany1,25,000Rs.
Liquidationexpenses6,250Rs.

7. B.COM4
TH
SEMESTER.
ADVANCEDCORPORATEACCOUNTING.
7
ABHISHEKDK,COMMERCELECTURER.
Liquidatoristobepaidacommissionof2%ontheamountactuallypaidtounsecured
creditorsincludingpreferentialcreditors.
PrepareLiquidatorsFinalStatementofA/c.
7.ThefollowingwastheBalanceSheetofUnsoundLimitedasat31/12/18whenitwas
woundupvoluntarily:
Liabilities Rs. Assets Rs.
50,000equitysharesof
Rs.10each.
2,000,6%cumulative
preferencesharesof100
Rs.each.
7%Debentures
SundryCreditors:
Trade3,00,000
Cash48,000
Outstanding2,000
5,00,000
2,00,000
1,00,000
3,50,000
PlantandMachinery
Furniture
Investments
Stock
Debtors
Cash
ProfitandLossA/c
4,00,000
1,000
50,000
50,000
2,00,000
1,200
4,47,800
11,50,000 11,50,000
Preferencedividendisinarrearsfor1year.Debentureinterestisalsoduefor1year.
Alltheoutstandingcreditorsarepreferential.
Theassetsrealizedare:
PlantandMachineryRs.2,80,000
FurnitureRs.400
DebtorsRs.1,50,000
Thestockandinvestmentsrealizednothing.
Theliquidationexpensesamountedto2,000Rs.
Theliquidatorisentitledtoacommissionof4%ontheassetsrealizedand2%on
amountpaidtounsecuredcreditors.

8. B.COM4
TH
SEMESTER.
ADVANCEDCORPORATEACCOUNTING.
8
ABHISHEKDK,COMMERCELECTURER.
8.TheUnluckyLimitedwentintovoluntaryliquidationon31/03/18onwhichdate,the
positionwasasfollows:
Liabilities Rs. Assets Rs.
5,000equitysharesof100
Rs.each,80Rs.paidup.
Loan(securedby
MortgageofLandand
Building).
UnsecuredLiabilities
(including10,000Rs.
preferentialcreditors).
4,00,000
1,00,000
2,00,000
LandandBuilding
Fixedassets
Stock
Debtors
Loan
Cash
ProfitandLossA/c
80,000
2,60,000
1,05,000
1,00,000
40,000
5,000
1,10,000
7,00,000 7,00,000
LandandBuildingwererealizedbysecuredcreditors1,20,000Rs.andotherfixed
assetsrealized40,000Rs.,debtors20,000Rs.,stockrealized10,000Rs.
Loanswerewhollybad.Liquidatorisentitledtoafixedremunerationof1,000plus
2%ontheamountpaidtounsecuredcreditors.
Liquidator,outofpocketexpensesamountedto1,000Rs.ShowtheLiquidators
StatementofA/c.
9.BalanceSheetofXLimitedason31/12/18:
Liabilities Rs. Assets Rs.
4,000,6%preference
sharesof100Rs.each.
2,000equitysharesof100
Rs.each,75Rs.paidup.
6,000equitysharesof100
Rs.each,60Rs.pershare
paidup.
5%Debentures
Outstandingdebenture
interest
Creditors
4,00,000
1,50,000
3,60,000
2,00,000
10,000
2,90,000
Land
Plant
Patents
Stock
Debtors
Cash
PandLA/c
2,00,000
5,00,000
80,000
1,10,000
2,20,000
60,000
2,40,000

9. B.COM4
TH
SEMESTER.
ADVANCEDCORPORATEACCOUNTING.
9
ABHISHEKDK,COMMERCELECTURER.
14,10,000 14,10,000
OnthedateofBalanceSheet,thecompanywentintoliquidation.Thedividendson
preferencesharesareinarrearsfor2years.Thearrearsarepayableonliquidationas
perArticlesofAssociation.Thedebentureshaveafloatingchargeontheassetsofthe
company.Creditorsincludealoanof1,00,000Rs.securedbymortgageofland.The
assetsrealizedareasunder:
Land2,40,000Rs.
Patents60,000Rs.
Debtors1,60,000Rs.
Plant4,00,000Rs.
Stock1,20,000Rs.
Theexpensesofliquidationamountedto21,800Rs.Theliquidatorisentitledtoa
commissionof3%onallassetsrealizedincludingcashandacommissionof2%on
theamountdistributedtounsecuredcreditors.Preferentialcreditorsamountedto
30,000Rs.PrepareLiquidatorsFinalStatementofA/c.
10.QuickConsumptionLimitedwentintovoluntaryliquidationon31/12/18.The
BalanceSheetasonthatdatewas:
Liabilities Rs. Assets Rs.
ShareCapital:
5,000,6%cumulative
preferencesharesof100
Rs.eachfullypaid.
2,500equitysharesof100
Rs.each,75Rs.paidup.
7,500equitysharesof100
Rs.each,60Rs.paidup.
5%MortgageDebentures
Interestoutstandingon
debentures
5,00,000
1,87,500
4,50,000
2,50,000
12,500
LandandBuilding
Machinery
Patents
Stock
Debtors
CashatBank
PandLA/c
2,50,000
6,25,000
1,00,000
1,37,500
2,75,000
75,000
3,00,000

10. B.COM4
TH
SEMESTER.
ADVANCEDCORPORATEACCOUNTING.
10
ABHISHEKDK,COMMERCELECTURER.
Creditors 3,62,500
17,62,500 17,62,500
Theliquidatorisentitledtoacommissionof3%onallassetsrealizedexceptcashand
2%onamountdistributedtounsecuredcreditors.
Creditorsinclude17,500Rs.forincometaxduetogovernment,5,000Rs.outstanding
salariesofemployeesandanawardof15,000Rs.madeunderWorkmen’s
CompensationAct.Italsoincludesaloanfor1,25,000Rs.securedbyMortgageon
LandandBuilding.Thepreferencedividendswereinarrearsfor2years.Theassets
realizedasfollows:
LandandBuilding3,00,000Rs.
Machinery5,00,000Rs.
Patents75,000Rs.
Stock1,50,000Rs.
Debtors2,00,000Rs.
ExpensesofliquidationamountedtoRs.27,250.
PrepareLiquidatorsFinalStatementofA/c.
11.SlowProgressLimitedwentintovoluntaryliquidationon31/03/18,BalanceSheetof
thecompanywasasfollows:
Liabilities Rs. Assets Rs.
Sharecapital:
5,0006%preference
sharesof100Rs.each,
fullypaid.
2,500equitysharesof100
Rs.each,75Rs.paidup.
7,500equitysharesof100
Rs.each,60Rs.paid.
5%MortgageDebentures
InterestOutstanding
SundryCreditors
5,00,000
1,87,500
4,50,000
2,50,000
12,500
3,62,500
LandandBuilding
PlantandMachinery
Patents
Stock
Debtors
Cash
ProfitandLossA/c
2,75,000
6,00,000
1,00,000
1,37,500
2,75,000
75,000
3,00,000

11. B.COM4
TH
SEMESTER.
ADVANCEDCORPORATEACCOUNTING.
11
ABHISHEKDK,COMMERCELECTURER.
17,62,500 17,62,500
Theliquidatorisentitledtoaremunerationof4%onallassetsrealizedexceptcash
and3%onamountdistributedtounsecuredcreditorsotherthanpreferentialcreditors.
Creditorsincludepreferentialcreditors37,500Rs.andaloanfor1,25,000Rs.secured
bymortgageonLandandBuilding.
Thepreferentialdividendswereinarrearsfor2years.
Theassetsrealizedasfollows:
LandandBuilding3,25,000Rs.
PlantandMachinery5,00,000Rs.
Patents75,000Rs.
Stock1,50,000Rs.
Debtors2,00,000Rs.
Liquidationexpensesamountedto27,250Rs.PrepareLiquidatorsFinalStatementof
A/c.
12.SCompanywentintoliquidationon1
st
January2018.Theliquidatorwhose
remunerationis3%onallassetsrealizedand2%onamountdistributedtopreferential
shareholdersandEquityshareholdersandassetsrealized10,00,000Rs.
Expensesofliquidation18,000Rs.
UnsecuredCreditors(includingsalaryandwagesoutstanding12,000Rs)1,36,000Rs.
10,000,6%PreferenceSharesof30Rs.each3,00,000Rs.
20,000EquitySharesof10Rs.each,9Rs.persharearecalledandpaid1,80,000Rs.
GeneralReserve2,40,000Rs.
ProfitandLossA/c40,000Rs.
UnderArticlesofAssociationofthecompany,thepreferenceshareholdershavethe
righttoreceive1thirdofthesurplusafterrepayingtheEquityShareCapital.
PrepareLiquidatorsFinalStatementofA/c.
13.AnuLimitedwentintoliquidationon31/03/14,whenthestateofaffairswasas
follows:
UnsecuredcreditorswasRs.8,00,000includingRs.1,00,000preferentialclaims.
SecuredcreditorssecuredbyplantandmachinerystoodatRs.4,00,000.Cashinhand
wasRs.20,000.

12. B.COM4
TH
SEMESTER.
ADVANCEDCORPORATEACCOUNTING.
12
ABHISHEKDK,COMMERCELECTURER.
TheliquidatorrealizedplantandmachineryforRs.3,00,000andotherassetsrealized
Rs.2,00,000.TheliquidationexpensescametoRs.20,000andliquidator’s
remunerationwasfixedat4%oftheamountrealizedincludingcashbalanceand2%
oftheamountdistributedtounsecuredcreditorsincludingpreferentialcreditors.
PrepareLiquidator’sfinalstatementofAccount.
14.TheBalanceSheetofNarayanLtd.Ason31-3-2014wasasfollows:
Liabilities Rs. Assets Rs.
Paid-upcapital:
2000,6%preferenceshares
ofRs.100each
4000Eq.sharesofRs.100
eachfullypaid
6000Eq.sharesofRs.100
each,Rs.50,paid
6%debenture
(Floatingchargesonall
assets)
Mortgageonlandand
buildings
S.Creditors
Incometaxprovision
2,00,000
4,00,000
3,00,000
2,00,000
2,00,000
1,80,000
20,000
Landandbuildings
Plantandmachinery
Stock
S.Debtors
CashatBank
P/LA/c
4,00,000
4,40,000
2,00,000
2,00,000
60,000
3,00,000
15,00,000 15,00,000
Thecompanywentintoliquidationon1-4-2014.Thepreferencedividendswerein
arrearsfor3years.Thearrearsarepayableonliquidation.
Theassetswererealizedasfollows:
Rs.
Landandbuildings 4,80,000
Plantandmachinery 3,60,000
Stock 1,40,000
Debtors 1,20,000
Expensesofliquidation 16,000

13. B.COM4
TH
SEMESTER.
ADVANCEDCORPORATEACCOUNTING.
13
ABHISHEKDK,COMMERCELECTURER.
Theliquidatorisentitledtoacommissionof2%onallassetsrealizedand3%onthe
amountdistributedtounsecuredcreditors(includingpreferentialcreditors).
Allthepaymentmadeon30
th
Sep.2014.
PrepareLiquidator’sFinalStatementofAccount.
15.RamuLtd.Wentintovoluntaryliquidationon31-03-2014whentheirliabilitiesand
assetswereasfollows:
Liabilities Rs. Assets Rs.
Issuedand
SubscribedCapital:
10,000,10%
CumulativePref.
SharesofRs.100
eachfullypaid
5,000Equityshares
ofRs.100eachRs.
75paid
15,000Equity
sharesofRs.100
eachRs.60paid
15%debentures
securedbyFloating
charge
Interesto/son
debentures
Creditors
10,00,000
3,75,000
9,00,000
5,00,000
75,000
6,37,500
LandandBuildings
MachineryandPlant
Patents
Stock
Debtors
Cashatbank
5,00,000
18,12,500
2,00,000
2,75,000
5,50,000
1,50,000
34,87,500 34,87,500
Preferencedividendswereinarrearsfor2yearsandthecreditorsincludedpreferential
creditorsofRs.76,000.
Theassetsrealizedadfollows:
LandandbuildingRs.6,00,000
MachineryandplantRs.10,00,000

14. B.COM4
TH
SEMESTER.
ADVANCEDCORPORATEACCOUNTING.
14
ABHISHEKDK,COMMERCELECTURER.
PatentsRs.1,50,000
StockRs.3,00,000
SundryDebtorsRs.4,00,000
TheexpensesofliquidationamountedtoRs.54,500.Theliquidatorisentitledtoa
commissionof3%onassetsrealized.
Assumingthefinalpaymentsincludingthoseondebenturesismadeon30-09-2014.
ShowLiquidator’sFinalStatementofAccount.
16.ThefollowingparticularsrelatetoPrasadLtd.,whichwentintovoluntaryliquidation:
PreferentialcreditorsRs.40,000
UnsecuredcreditorsotherthanpreferentialcreditorsRs.3,20,000
DebentureholdersRs.1,00,000
AssetsrealizedRs.3,96,500
LiquidationexpensesRs.10,000
YouarerequiredtoprepareLiquidator’sFinalStatementofaccountallowingfor
hisremunerationat2%onassetsrealizedand2%onamountdistributedto
unsecuredcreditorsincludingpreferentialcreditors.
17.BhavyaLtd.,wentintovoluntaryliquidationon31-03-16.Asatthisdate,itsBalance
Sheetwasasunder:
Particulars Rs.
12%preferencesharesofRs.100
20,000equitysharesofRs.10eachfully
paid
50,000equitysharesofRs.10eachRs.8
paid
30,000equitysharesofRs.10eachRs.6
paid
Creditors(includingsecuredcreditorsRs.
60,000andpreferentialcreditorsRs.
15,000)
2,00,000
2,00,000
4,00,000
1,80,000
2,20,000
14,00,000

15. B.COM4
TH
SEMESTER.
ADVANCEDCORPORATEACCOUNTING.
15
ABHISHEKDK,COMMERCELECTURER.
Assets
Freeholdproperty
PlantandMachinery
MotorVehicles
Stock
Debtors
Cashinhand
P&LA/c
5,80,000
2,90,000
60,000
1,90,000
1,00,000
30,000
1,50,000
14,00,000
AdditionalInformation:
1.Thepreferencedividendisinarrearfor2yearsanditpayableonliquidation.
2.Theliquidatorrealizestheassetsasfollows:FreeholdPropertyRs.7,00,000,Plant
andMachineryRs.2,50,000,MotorVehiclesRs.40,000,StockRs.1,75,000and
DebtorsRs.80,000.
3.TheliquidationexpensesamountedtoRs.5,000andtheliquidatorisentitledtoa
remunerationof3%onassetsrealized(excludingcash)and2%ontheamountpaidto
unsecuredcreditorsincludingpreferentialcreditors.
YouarerequiredtoprepareLiquidator’sFinalStatementofaccountandcalculatethefinal
paymentpereachcategoryofequityshare.
__________________________________________________________________________