Karat Co. Ltd. went into voluntary liquidation on 1 March 210. The following balances are extracted from its books on that date:
|
Liabilities
|
|
Assets
|
|
|
Capital
|
2,50,000
|
Buildings
|
75,000
|
|
25,000 Equity
|
|
Plant &
|
1,05,000
|
|
Shares of Rs. 10
|
|
Machinery
|
|
|
each
|
|
Stock in Trade
|
47,500
|
|
Debentures
|
1,00,000
|
Book Debts
|
|
|
(Secured by a
|
|
37,500
|
|
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Floating Charge)
|
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Less: Provision
|
|
|
Bank Overdraft
|
15,000
|
5,000
|
32,500
|
|
Creditors
|
20,000
|
Calls-in-Arrears
|
50,000
|
|
|
Cash in Hand
|
5,000
|
|
|
P&L A/c
|
70,000
|
|
3,35,00
|
|
3,35,000
|
Plant & Machinery and buildings are valued at Rs.75,000 and Rs.60,000, respectively. On realization, losses of Rs.7,500 are expected on stock. Book debts will realize Rs.35,000. Calls-in- arrears are expected to realize 90%. Bank O/D is secured against buildings. Preferential creditors for taxes and wages are Rs.3,000 and miscellaneous expenses outstanding Rs.1,000. Prepare a statement of affairs to be submitted to the meeting of creditors.