In January 2011 a compulsory order for winding up was made against a public limited company, the following particulars being disclosed:
|
Book Value
|
Estimated to Produce
|
|
$ |
$ |
|
Cash in Hand
|
500
|
500
|
|
Debtors
|
20,000
|
18,000
|
|
Buildings
|
3,00,000
|
2,40,000
|
|
Furniture
|
1,00,000
|
1,00,000
|
|
Unsecured Creditors
|
1,00,000
|
-
|
|
Debentures:
|
|
|
|
Secured on Buildings
|
2,10,000
|
|
|
Secured on Floating Charge
|
50,000
|
|
|
Preferential Creditors
|
30,000
|
|
|
Share Capital:
|
16,00,000
|
|
|
1,60,000 shares of $10 Each
|
|
|
Estimated liability for bills discounted was $30,000 estimated to rank $30,000. Other contingent liabilities were $60,000 estimated to rank $60,000. The Company was formed on 1 January 2006 and had ? 5. losses of $15,69,500. Prepare statement of affairs and deficiency account.