Bolitmore Ltd went into voluntary liquidation on 30 June 2017, its summarised statement of financial position then being:Current assetsShare capital:Receivables20,000200,000 shares issued at a priceInventory176000of $10, called to $51,000,000Cash4,000200,000Less: Calls in arrears (20000 at $5)-100,000Non-current assetsLand500,000Plant220,000720,000Total assets920,000Current liabilitiesPayables20,000Total Equity900,000Net assets900,000All assets realised $200,000. Calls in arrears were fully collected. Costs of liquidation were $5000.RequiredRecord the above in the Liquidation account, the Liquidator’s Cash account and the Shareholders’ Distribution account.
Bolitmore Ltd went into voluntary liquidation on 30 June 2017, its summarised statement of financial position then being:Current assetsShare capital:Receivables20,000200,000 shares issued at a priceInventory176000of $10, called to $51,000,000Cash4,000200,000Less: Calls in arrears (20000 at $5)-100,000Non-current assetsLand500,000Plant220,000720,000Total assets920,000Current liabilitiesPayables20,000Total Equity900,000Net assets900,000All assets realised $200,000. Calls in arrears were fully collected. Costs of liquidation were $5000.RequiredRecord the above in the Liquidation account, the Liquidator’s Cash account and the Shareholders’ Distribution account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Bolitmore Ltd went into voluntary liquidation on 30 June 2017, its summarised
Current assets
Share capital:
Receivables
20,000
200,000 shares issued at a price
Inventory
176000
of $10, called to $5
1,000,000
Cash
4,000
200,000
Less: Calls in arrears (20000 at $5)
-100,000
Non-current assets
Land
500,000
Plant
220,000
720,000
Total assets
920,000
Current liabilities
Payables
20,000
Total Equity
900,000
Net assets
900,000
All assets realised $200,000. Calls in arrears were fully collected. Costs of liquidation were $5000.
Required
Record the above in the Liquidation account, the Liquidator’s Cash account and the Shareholders’ Distribution account.
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