Problem 20.9 (Liquidator's cash available and share of deficiency) Esmeralda Ltd went into voluntary liquidation on 30 June 20X2, its shareholders' equity being as follows: 30 000 6% preference shares of $2 each paid to $1.50 (preferred as to return of capital and dividends in the event of liquidation) 20 000 first issue 'A' ordinary shares of $1 each fully paid 15 000 second issue 'A' ordinary shares of $1 each fully paid to $0.75 5000 'B' ordinary shares of $1 each paid to $0.25 45 000 20 000 11 250 1 250 77 500 General reserve 8 200 4 000 $89 700 Retained earnings Note: The last preference dividend was paid to 30 June 20X0. To adjust the rights of shareholders the liquidator made the following calls: • $0.25 per share on second issue 'A' ordinary shares; and • $0.25 per share on 'B' ordinary shares. All amounts due on these calls were received except those in respect of 400 second issue 'A' ordinary shares and 200 'B' ordinary shares. These proved to be irrecoverable and were forfeited. Debts due by the company amounted to $15 820, assets realised amounted to $80 100, and liquidation expenses were $929. The liquidator's remuneration was fixed at 1% on the proceeds of assets. All shares were issued before 1 July 1998. Required 1 Prepare the liquidator's final statement of receipts and payments (that is, work out the cash available-the liquidator's cash account). 2 Prepare a statement showing the loss of capital and how it was borne by the shareholders. 3 Prepare the shareholders' distribution account.

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686
CORPORATE ACCOUNTING IN AUSTRALIA
Problem 20.9 (Liquidator's cash available and share of deficiency)
Esmeralda Ltd went into voluntary liquidation on 30 June 20X2, its shareholders' equity being as
follows:
2$
30 000 6% preference shares of $2 each paid to $1.50
(preferred as to return of capital and dividends in the event of liquidation)
20 000 first issue 'A' ordinary shares of $1 each fully paid
15 000 second issue 'A' ordinary shares of $1 each fully paid to $0.75
45 000
20 000
11 250
5000 'B' ordinary shares of $1 each paid to $0.25
1 250
77 500
General reserve
Retained earnings
8 200
4 000
$89 700
Note: The last preference dividend was paid to 30 June 20X0.
To adjust the rights of shareholders the liquidator made the following calls:
• $0.25 per share on second issue 'A' ordinary shares; and
• $0.25 per share on 'B' ordinary shares.
All amounts due on these calls were received except those in respect of 400 second issue 'A'
ordinary shares and 200 'B' ordinary shares. These proved to be irrecoverable and were forfeited.
Debts due by the company amounted to $15 820, assets realised amounted to $80 100, and
liquidation expenses were $929.
The liquidator's remuneration was fixed at 1% on the proceeds of assets. All shares were issued
before 1 July 1998.
Required
1 Prepare the liquidator's final statement of receipts and payments (that is, work out the cash
available-the liquidator's cash account).
2 Prepare a statement showing the loss of capital and how it was borne by the shareholders.
3 Prepare the shareholders' distribution account.
Transcribed Image Text:686 CORPORATE ACCOUNTING IN AUSTRALIA Problem 20.9 (Liquidator's cash available and share of deficiency) Esmeralda Ltd went into voluntary liquidation on 30 June 20X2, its shareholders' equity being as follows: 2$ 30 000 6% preference shares of $2 each paid to $1.50 (preferred as to return of capital and dividends in the event of liquidation) 20 000 first issue 'A' ordinary shares of $1 each fully paid 15 000 second issue 'A' ordinary shares of $1 each fully paid to $0.75 45 000 20 000 11 250 5000 'B' ordinary shares of $1 each paid to $0.25 1 250 77 500 General reserve Retained earnings 8 200 4 000 $89 700 Note: The last preference dividend was paid to 30 June 20X0. To adjust the rights of shareholders the liquidator made the following calls: • $0.25 per share on second issue 'A' ordinary shares; and • $0.25 per share on 'B' ordinary shares. All amounts due on these calls were received except those in respect of 400 second issue 'A' ordinary shares and 200 'B' ordinary shares. These proved to be irrecoverable and were forfeited. Debts due by the company amounted to $15 820, assets realised amounted to $80 100, and liquidation expenses were $929. The liquidator's remuneration was fixed at 1% on the proceeds of assets. All shares were issued before 1 July 1998. Required 1 Prepare the liquidator's final statement of receipts and payments (that is, work out the cash available-the liquidator's cash account). 2 Prepare a statement showing the loss of capital and how it was borne by the shareholders. 3 Prepare the shareholders' distribution account.
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