Due to the serious problems with the export market, Makadara Stores on 31 December 20 ceived a compulsory order for winding up. The following particulars were disclosed:- Cash in hand Debtors Land and buildings Furniture and fixtures Unsecured creditors Debentures: 3 Secured on land and buildings Secured by floating charge Preferential creditors Share capital (3,200 shares of sh.100 each) Book value Sh. 10,000 40,000 600,000 200,000 200,000 Lequired: a) Prepare a Statement of Affairs as at 31st December 2005. b) Deficiency Account as at 31st December 2005. 420,000 100,000 60,000 320,000 Estimated to produce Sh. 10,000 36,000 480,000 200,000 dditional information 1. Estimated liability for bills discounted was Sh.60, 000 estimated to rank at Sh.60, 00 2. Other contingent liabilities were Sh.120, 000 estimated to rank Sh.120, 000. 3. The company was formed on 1st January 2003; and had made losses of Sh.250,000.
Due to the serious problems with the export market, Makadara Stores on 31 December 20 ceived a compulsory order for winding up. The following particulars were disclosed:- Cash in hand Debtors Land and buildings Furniture and fixtures Unsecured creditors Debentures: 3 Secured on land and buildings Secured by floating charge Preferential creditors Share capital (3,200 shares of sh.100 each) Book value Sh. 10,000 40,000 600,000 200,000 200,000 Lequired: a) Prepare a Statement of Affairs as at 31st December 2005. b) Deficiency Account as at 31st December 2005. 420,000 100,000 60,000 320,000 Estimated to produce Sh. 10,000 36,000 480,000 200,000 dditional information 1. Estimated liability for bills discounted was Sh.60, 000 estimated to rank at Sh.60, 00 2. Other contingent liabilities were Sh.120, 000 estimated to rank Sh.120, 000. 3. The company was formed on 1st January 2003; and had made losses of Sh.250,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Due to the serious problems with the export market, Makadara Stores on 31³ December 2005
received a compulsory order for winding up. The following particulars were disclosed:-
Cash in hand
Debtors
Land and buildings
Furniture and fixtures
Unsecured creditors
Debentures:
3
Secured on land and buildings
Secured by floating charge
Preferential creditors
Share capital (3,200 shares of sh.100 each)
Book value
Sh.
10,000
40,000
600,000
200,000
200,000
420,000
100,000
60,000
320,000
Required:
a) Prepare a Statement of Affairs as at 31st December 2005.
b) Deficiency Account as at 31st December 2005.
Estimated
to produce
Sh.
10,000
36,000
480,000
200,000
Additional information
1. Estimated liability for bills discounted was Sh.60, 000 estimated to rank at Sh.60, 000.
2. Other contingent liabilities were Sh.120, 000 estimated to rank Sh.120,000.
3. The company was formed on 1st January 2003; and had made losses of Sh.250, 000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbf019715-463c-43e2-83f6-e22af19edc6b%2F4022ee1a-6c0a-48e0-9ac3-c202dbc66d9f%2F3a6j7b_processed.png&w=3840&q=75)
Transcribed Image Text:Due to the serious problems with the export market, Makadara Stores on 31³ December 2005
received a compulsory order for winding up. The following particulars were disclosed:-
Cash in hand
Debtors
Land and buildings
Furniture and fixtures
Unsecured creditors
Debentures:
3
Secured on land and buildings
Secured by floating charge
Preferential creditors
Share capital (3,200 shares of sh.100 each)
Book value
Sh.
10,000
40,000
600,000
200,000
200,000
420,000
100,000
60,000
320,000
Required:
a) Prepare a Statement of Affairs as at 31st December 2005.
b) Deficiency Account as at 31st December 2005.
Estimated
to produce
Sh.
10,000
36,000
480,000
200,000
Additional information
1. Estimated liability for bills discounted was Sh.60, 000 estimated to rank at Sh.60, 000.
2. Other contingent liabilities were Sh.120, 000 estimated to rank Sh.120,000.
3. The company was formed on 1st January 2003; and had made losses of Sh.250, 000.
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