Following are the balances taken from the books of Confidence Builders Ltd. as at 30th September, 2016 : Cr. Balances 2$ Dr. Balances 2$ Land and Buildings 1,00,000 Sundry Current Assets Share Capital: Issued : 11% Pref. Shares of $ 10 each 10,000 Equity Shares of $ 10 each, fully paid up 5,000 Equity Shares of $ 10 each, $7.50 per share paid up 1,20,000 3,95,000 38,500 Surplus Account (Negative Balance) 1,00,000 Debenture Issue Expenses not written off 2,000 37,500 1,50,000 80,000 30,000 32,000 13% Debentures Mortgage Loan Bank Overdraft Creditors for Trade Income-tax Arrears : (assessments concluded in July 2016) Assessment year 2014-15 Assessment year 2015-16 $ 21,000 5,000 26,000 5,55,500 5,55,500 Mortgage loan was secured against land and buildings. Debentures were secured by a floating charge on all the other assets. The company was unable to meet the payments and therefore the debentureholders appointed Receiver for the Debentureholders brought the land and buildings to auction and realised $1,50,000. He also took charge of sundry assets of the value of $ 2,40,000 and realised $ 2,00,000. The Liquidator realised $ 1,00,000 on the sale of the balance of sundry current assets. The Bank Overdraft was secured by a personal guarantee of two of the Directors of the company and on the Bank raising a demand, the Directors paid off the dues from their personal resources. Costs incurred by the Receiver were $ 2,000 and by the liquidator $ 2,800. The Receiver was not entitled to any remuneration but the liquidator was to receive 37% fee on the value of assets realised by him. Preference shareholders had not been paid dividend for period after 30th September, 2014 and interest for the last half-year was due to the debentureholders. Prepare the accounts to be submitted by the Receiver and the Liquidator. a Receiver and this was followed by a resolution for members' voluntary winding up. The
Following are the balances taken from the books of Confidence Builders Ltd. as at 30th September, 2016 : Cr. Balances 2$ Dr. Balances 2$ Land and Buildings 1,00,000 Sundry Current Assets Share Capital: Issued : 11% Pref. Shares of $ 10 each 10,000 Equity Shares of $ 10 each, fully paid up 5,000 Equity Shares of $ 10 each, $7.50 per share paid up 1,20,000 3,95,000 38,500 Surplus Account (Negative Balance) 1,00,000 Debenture Issue Expenses not written off 2,000 37,500 1,50,000 80,000 30,000 32,000 13% Debentures Mortgage Loan Bank Overdraft Creditors for Trade Income-tax Arrears : (assessments concluded in July 2016) Assessment year 2014-15 Assessment year 2015-16 $ 21,000 5,000 26,000 5,55,500 5,55,500 Mortgage loan was secured against land and buildings. Debentures were secured by a floating charge on all the other assets. The company was unable to meet the payments and therefore the debentureholders appointed Receiver for the Debentureholders brought the land and buildings to auction and realised $1,50,000. He also took charge of sundry assets of the value of $ 2,40,000 and realised $ 2,00,000. The Liquidator realised $ 1,00,000 on the sale of the balance of sundry current assets. The Bank Overdraft was secured by a personal guarantee of two of the Directors of the company and on the Bank raising a demand, the Directors paid off the dues from their personal resources. Costs incurred by the Receiver were $ 2,000 and by the liquidator $ 2,800. The Receiver was not entitled to any remuneration but the liquidator was to receive 37% fee on the value of assets realised by him. Preference shareholders had not been paid dividend for period after 30th September, 2014 and interest for the last half-year was due to the debentureholders. Prepare the accounts to be submitted by the Receiver and the Liquidator. a Receiver and this was followed by a resolution for members' voluntary winding up. The
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Following are the balances taken from the books of Confidence Builders Ltd. as at
30th September, 2016 :
Cr. Balances
Dr. Balances
2$
Land and Buildings
1,00,000 |Sundry Current Assets
Share Capital :
Issued : 11% Pref. Shares of $ 10 each
10,000 Equity Shares of $ 10
each, fully paid up
5,000 Equity Shares of $ 10
each, $7.50 per share paid up
1,20,000
3,95,000
38,500
Surplus Account (Negative Balance)
1,00,000 Debenture Issue Expenses not written
off
2,000
37,500
1,50,000
80,000
30,000
32,000
13% Debentures
Mortgage Loan
Bank Overdraft
Creditors for Trade
Income-tax Arrears :
(assessments concluded
in July 2016)
Assessment year 2014-15
Assessment year 2015-16
2$
21,000
5,000
26,000
5,55,500
5,55,500
Mortgage loan was secured against land and buildings. Debentures were secured by a floating charge
on all the other assets. The company was unable to meet the payments and therefore the debentureholders
appointed
Receiver for the Debentureholders brought the land and buildings to auction and realised $1,50,000. He
also took charge of sundry assets of the value of $ 2,40,000 and realised $ 2,00,000. The Liquidator realised
$ 1,00,000 on the sale of the balance of sundry current assets. The Bank Overdraft was secured by a
personal guarantee of two of the Directors of the company and on the Bank raising a demand, the Directors
paid off the dues from their personal resources. Costs incurred by the Receiver were $ 2,000 and by the
liquidator $ 2,800. The Receiver was not entitled to any remuneration but the liquidator was to receive 3%0
fee on the value of assets realised by him. Preference shareholders had not been paid dividend for period
after 30th September, 2014 and interest for the last half-year was due to the debentureholders.
Prepare the accounts to be submitted by the Receiver and the Liquidator.
a Receiver and this was followed by a resolution for members' voluntary winding up. The
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