You are asked by a liquidator of a company to prepare a statement of account to be placed before the meeting of the shareholders from the following particulars:
Balance Sheet of the Company as on the Date of Liquidation 1 January 2010
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Liabilities
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Assets
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Share Capital:
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Fixed Assets
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2,00,000
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20,000 Equity
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1,60,000
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Book Debts
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1,50,000
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Shares of Rs. 10
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Each, Rs. 8 Called
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Up
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5,000 Preference
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35,000
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Loss to Date
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50,000
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Shares of Z 10
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Each, Rs. 7 Called
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Up
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Secured Loan from Banks
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75,000
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Secured on
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Buildings and
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Machinery
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Trade Creditors
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1,30,000
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4,00,000
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4,00,000
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The assets were realized as follows:
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1 April 2010:
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Fixed assets: Rs.50,000; Book
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debts: Rs.50,000;
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Expenses paid: Rs.2,000
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1 June 2010:
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Fixed assets (Final):
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Rs.1,00,000; Book debts;
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Rs.50,000
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1 August 2010:
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Book debts final payment:
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Rs.25,000
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The liquidator is entitled to a commission of 5% on collections from book debts and 2% on the amounts paid to equity shareholders. Prepare the statement on the assumption that disbursements are made in accordance with the law as and when cash is available.