Sasu Company went into liquidation on 1.1.2014The liquidator whose remuneration is 3% on all the assets realized and 2% on amountdistributed to shareholders (Preferred and equity) realized all the assets for P1,000,000.Expenses of liquidation P18,000Unsecured creditors (including salary and wages outstanding P12,000 P136,000.10,000 6% preference shares of P30 each (dividend paid up to 31.12.2004) P300,000.20,000 equity shares of P10 each P9 per share are called and paid P180,000.General reserve P240,000Profit and losses P40,000Under Article of association of the company the preference shares have the right to receive1/3 of the surplus after repaying the equity share capital.Prepare Liquidators Final statement of Account.

When a Company is get liquidated, A liquidator has been appointed. All the Assets are realized and…

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Business

Accounting

Prepare Liquidators Final statement of Account.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Sasu Company went into liquidation on 1.1.2014
The liquidator whose remuneration is 3% on all the assets realized and 2% on amount
distributed to shareholders (Preferred and equity) realized all the assets for P1,000,000.
Expenses of liquidation P18,000
Unsecured creditors (including salary and wages outstanding P12,000 P136,000.
10,000 6% preference shares of P30 each (dividend paid up to 31.12.2004) P300,000.
20,000 equity shares of P10 each P9 per share are called and paid P180,000.
General reserve P240,000
Profit and losses P40,000
Under Article of association of the company the preference shares have the right to receive
1/3 of the surplus after repaying the equity share capital.
Prepare Liquidators Final statement of Account.

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