QuestionInsolvencyCharle the Cheap Ltd went into voluntary liquidation on 30 June 2021. Its stammarisedstatement of financial position at that date is as followsEquityShare capitalTotal equity(11)Charle the Cheap LtdStatement of Financial PositionAs at 30 June 201Current assetsDate48 000 Cash(Transfer cash)InventoryNon current assetsLandTotal assetsCurrent liabilitiesPayables48 000 Net assetsAll assets realised amounted to $48 000. Payables allowed an $800 discount Costs ofliquidation were $5 000.Required0(Realisation of assets)Complete the journal entries to liquidation. The narrations for the journal entrieshave been provided to you as additional guidance.fi RECESSRecord the entries in the Liquidation account, the Liquidators receipts &payments, and the Shareholders distribution account. (daa ne.Journal for your answer to question 4 part (1). Expand the table as needed to containyour answer.Account(Transfer of carrying amounts)(Record expenses of liquidation)(Record payment of payables & discount)Close of shareholders account)(Distribution of final funds to shareholders)(Close out bicuidation profit or loss)3100010 000DrLiquidators Receipts & PaymentsLiquidation15 00030 00063 000Shareholders Distribution-15 00048 000CrLedger accounts for your answer to question 4 part (ii). Expand the tables as needed tocontain your answer

Liquidation :— It is the process of ending of business and distributing the assets to creditors.…

Question : Insolvency Charle the Cheap Ltd went into voluntary liquidation on 30 June 2021. Its stammarised statement of financial position at that date is as follows: Equity Share capital Total equity Charlie the Cheap Ltd Statement of Financial Position As at 30 June 201 Current assets Date 48 000 Cash (Transfer cash) Inventory Non current assets Land Total assets Current liabilities Payables 48 000 Net assets (Realisation of assets) All assets realised amounted to $48 000. Payables allowed an $800 discount Costs of liquidation were $5 000. Required @ (11) Account Transfer of carrying amounts) Complete the journal entries to liquidation. The narrations for the journal entnes have been provided to you as additional guidance. Si TELE Record the entries in the Liquidation account, the Liquidators receipts & payments, and the Shareholders distribution account. (30 daa ne. Journal for your answer to question 4 part (i). Expand the table as needed to contain your answer. 31000 (Record expenses of liquidation) OKO (Record payment of payables & discount) Dr 13 000 50 000 63 000 15 000 48 000 Cr

Question : Insolvency Charle the Cheap Ltd went into voluntary liquidation on 30 June 2021. Its stammarised statement of financial position at that date is as follows: Equity Share capital Total equity Charlie the Cheap Ltd Statement of Financial Position As at 30 June 201 Current assets Date 48 000 Cash (Transfer cash) Inventory Non current assets Land Total assets Current liabilities Payables 48 000 Net assets (Realisation of assets) All assets realised amounted to $48 000. Payables allowed an $800 discount Costs of liquidation were $5 000. Required @ (11) Account Transfer of carrying amounts) Complete the journal entries to liquidation. The narrations for the journal entnes have been provided to you as additional guidance. Si TELE Record the entries in the Liquidation account, the Liquidators receipts & payments, and the Shareholders distribution account. (30 daa ne. Journal for your answer to question 4 part (i). Expand the table as needed to contain your answer. 31000 (Record expenses of liquidation) OKO (Record payment of payables & discount) Dr 13 000 50 000 63 000 15 000 48 000 Cr

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

АCTIVITY XYZ Co.'s statement of financial position shows the following account balances before liquidation: Cash Other Assets P60,000 870,000 P930,000 Total Assets Accounts payable Payable to Y X, Capital (20%) Y, Capital (30%) Z, Capital (50%) Total Liabilities & Equity P60,000 40,000 160,000 260,000 410,000 P930,000 All of the other assets were sold for only P680,000. Liquidation expenses amounting to P6,000 were paid. Requirement: Compute the amount of cash distributed to each partner
QUESTION : " The balance sheet of Lara Ltd are as follows: 31/12/2019 Non-Current Assets RM RM RM Equipment (Cost) Less: Accumulated depreciation 28,500 (11,450) 17,050 Current Assets 18,570 Inventory Account receivable 8,470 Less: Provision doubtful debts (420) 8,050 4,060 30,680 Cash and bank Total Assets Current Liabilities Account Payable 4,140 Non-Current Liabilities Loan 10,000 Total Liabilities (14,140) 16,540 Net Assets 33,590 Capital Opening Add: Net profit 35,760 10,240 Cash introduced Less: Drawing Total Capital (12,410) 33,590 31/12/2020 Non-Current Assets RM RM RM Equipment (Cost) Less: Accumulated depreciation 26,100 (13,010) 13,090 Current Assets 16,250 Inventory Account receivable 14,190 Less: Provision doubtful debts (800) 13,390 3,700 33,340 Cash and bank Total Assets Current Liabilities Account Payable 5,730 Non-Current Liabilities Loan 4,000 23,610 36,700 Total Liabilities (9,730) Net Assets
On 1 July 2019, ABC Ltd took control of the assets and liabilities of PQR Ltd. At this date the statement of financial position of PQR Ltd was as follows:Carrying AmountFair ValueMachinery$40 000$57 000Fixtures & fittings60 00078 000Vehicles35 00045 000Current assets10 00022 000Current liabilities(16 000)(19 000)Total net assets$129 000Share capital (80 000 shares at $1.00 per share)80 000General reserve20 000Retained earnings29 000Total equity$129 000REQUIRED:Prepare the acquisition analysis in the records of ABC Ltd at 1 July 2019 in the following situations, assuming the costs of issuing the shares by ABC Ltd cost $2600:a. ABC Ltd issued 80 000 shares having a fair value of $2.50 per share in exchange for the net assets of PQR Ltdb. ABC Ltd acquired the shares of PQR Ltd. The agreement was that ABC Ltd would pay the shareholders of PQR Ltd one share in ABC Ltd for every two shares held in PQR Ltd plus $1 in cash for each share held in PQR Ltd. Shares…
Mvula Limited Statement of Financial Position as at: 28 February 2021 ASSETS Non-current assets Fixed/tangible assets Financial assets Fixed deposit Current assets Inventory Trade and other receivables Cash and cash equivalents Fixed deposit TOTAL ASSETS 4 320 350 EQUITY AND LIABILITIES Bay Holdings Limited: 30 June 2021.Required:Statement of financial position as at: 30 June 2021InformationBALANCE SHEET ACCOUNTSOrdinary share capital 2 648 000Retained income (1 Jul 2020) 490 000Shareholders for dividends 280 000Fixed deposit 60 000Mortgage bond 336 000Fixed/tangible assets (Carrying value) 4 021 000Debtors control 45 000Creditors…
The following data were taken from the statement of realization and liquidation of Rise Heart Company for the quarter ended September 30, 2021. 000.0 Liabilities to be liquidated Supplementary credits Liabilities not liquidated Supplementary debits Assets acquired Liabilities assumed P1,825,000 845,000 1,000,000 620,500 880,500 770,000 8- 737,500 Assets to be realized lopiJ bas noitesilso wolad ew 875,000 1,595,000 Assets realized Liabilities liquidated The beginning balances of ordinary shares and retained earnings are P520,000 and P(148,000), respectively. The net income for the period is P104,500. How much is the ending cash balance? 000,.08 botsl
Prepare the Pro Forma Statement of Financial Position as at 31 December 2023 from the Statement ofFinancial Position and additional information provided below:INFORMATIONThe financial position of Gatti Limited as at 31 December 2022 is reflected the following statement:Statement of Financial Position as at 31 December 2022 R ASSETSNon-current assets 1 400 000Property, plant and equipment 1 200 000Fixed deposits 200 000Current assets 5 800 000Inventories 3 400 000Accounts receivable 2 000 000Cash and cash equivalents 400 000Total assets 7 200 000 EQUITY AND LIABILITIESEquity 4 680 000Ordinary share capital 3 600 000Retained earnings 1 080 000Non-current liabilities 720 000Long-term loan 720 000Current liabilities 1 800 000Accounts payable 1 800 000Total equity and liabilities 7 200 000 Additional informationThe following must be taken into account for 2023:■ Sales are forecast at R60 000 000, with a profit margin of 10% and a gross margin of 30%. Fifty percent(50%) of the sales is…
Pitch Co. is undergoing liquidation. Infórmation on Pitch Co.. assets and liabilities is shown below: Вook value Realizable value ASSETS 1,000,000 500,000 1,300,000 Assets pledged to fully secured creditors Assets pledged to partially secured creditors 300,000 1,600,000 1,280,000 Free assets 3,100,000 2,880,000 LIABILITIES Unsecured liabilities with priority 400,000 480,000 1,000,000 1,050,000 Fully secured creditors Partially secured creditors Unsecured creditors without priority 650,000 650,000 1,400,000 3,580,000 1,400,000 3,450,000 1. What is the estimated recovery percentage of unsecured creditors without priority? а. 60% b. 75% с. 78% d. 80%
A statement of financial affairs created for an insolvent corporation that is beginning the process of liquidation discloses the following data. The assets are shown at net realizable values. Assets pledged with fully secured creditors Fully secured liabilities Assets pledged with partially secured creditors Partially secured liabilities Assets not pledged Unsecured liabilities with priority Accounts payable (unsecured) $ 230,000 165,000 395,000 520,000 315,000 189,200 405,000 a. The company owes $18,000 on an account payable to an unsecured creditor (without priority). How much money can this creditor expect to collect? b. The company owes $130,000 to a bank on a note payable that is secured by a security interest attached to property with an estimated net realizable value of $95,000. How much money can the bank expect to collect? a. Expected amount by creditor b. Expected amount by bank
When AAA Company filed for liquidation with the Securities and Exchange Commission, it prepared the following statement of financial position: Current Assets (net realizable value, P50,000) Land and Building (fair value, P240,000) Goodwill (fair value, 0) Total Assets Accounts Payable Mortgage Payable (secured by land & building) Ordinary share Accumulated profits Total Liabilities and Equity b. 56.25% c. 50.00% P 80,000 200,000 d. 43.75% 40,000 P320,000 P160,000 200,000 100,000 What percentage of their claims are the unsecured creditors likely to get? a. 100% (140,000) P320,000
CAPRI LIMITED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2022 ASSETS Non-current assets Property, plant and equipment (cost) Accumulated depreciation Investments Current assets Inventory Accounts receivable Bank R 5 040 000 4 980 000 (1 260 000) 1 320 000 6 120 000 2 100 000 2 460 000 1 560 000 11 160 000 EQUITY AND LIABILITIES Equity 7 500 000 5 118 000 Ordinary Share Capital Retained Income 2 382 000 Non-current liabilities Loan Current liabilities Accounts payable Dividends payable 2 700 000 2 700 000 960 000 576 000 384 000 11 160 000
The following information relates to the activities of Goalie Plc: Statement of financial position as at 30 April 2019 $'000 2020 $'000 Non-current assets Freehold land, cost Plant and equipment 2,100 2,340 990 3,090 1,092 3,432 Current assets Inventory 1,068 1,494 Receivables 990 912 Bank 90 2,148 5,238 2,406 5,838 Total assets Equity and liabilities Equity 2,808 3,750 Non-current liabilities: 6% debentures 1,350 750 Current liabilities Payables 720 690 Bank overdraft 378 Corporation tax 360 270 1,080 1,338 2,088 Total liabilities 2,430 Equity and liabilities 5,238 5,838 Income statement for the year ended 30 April 2020: $'00 13,560 (10,260) 3,300 Sales Cost of sales Gross profit Expenses (2,298) 1,002 Profit before tax Таx (450) Profit after tax 552
1. The following information is from Direct to You Corp.’s (DYC) financial records for its year ended December 31, 2020: Select statement of financial position information: 2020 2019 Investments in financial assets (at fair value through profit or loss [FVPL]) 12,000 10,000 Inventory 575,000 498,000 Property, plant, and equipment (PPE) 1,984,000 1,396,000 Less: accumulated depreciation (650,400) (487,000) Copyright 126,000 135,000 Patents 564,000 417,000 Select statement of comprehensive income information: Depreciation of property, plant, and equipment (334,400) Amortization of patents (65,000) Interest expense (75,000) Impairment loss — copyright (9,000) Gain on sale of PPE 23,000 Additional information: PPE that originally cost $570,000 was sold during the year. 100,000 common shares were issued in 2020 to acquire $450,000 of property, plant, and equipment. DYC is subject to IFRS. What amount of net cash used…