You are asked by a liquidator of a company to prepare a Statement of Account to be laid before a meeting of the shareholders from the following: BALANCE SHEET as on date of Liquidation 1-1-2016 1. Equity and Liabilities (1) Shareholders' Funds (a) Share Capital 4,000 Equity Shares of $100 each called $80 3,20,000 1,000 Preference Shares of $100 each called $70 70,000 (b) Reserves and Surplus: Surplus A/c (Negative Balance) (-) 1,00,000 (2) Non-current Liabilities Secured Loans Secured Loan from Bank on Building and Machinery 1,50,000 (3) Current Liabilities Trade Creditors 2,60,000 Total Equity and Liabilities 7,00,000 II. Assets (1) Non-Current Assets Fixed Assets 4,00,000 (2) Current Assets Books Debts 3,00,000 Total Assets 7,00,000 The assets realised as follows : 1-4-2016- Book Debts $1,00,000, expenses paid $4,000 ; 1-6-2016Fixed Assets (final) $3,00,000, Book Debts $ 1,00,000. 1-8-2016– Book Debts (final) $50,000. The Liquidator is entitled to 5% on collections from book debts and 2% on the amount paid to equity shareholders. Prepare the Liquidator's Final Statement of Account on the assumption that disbursements are made in accordance with law, as and when cash is available.

You are asked by a liquidator of a company to prepare a Statement of Account to be laid before a meeting of the shareholders from the following: BALANCE SHEET as on date of Liquidation 1-1-2016 1. Equity and Liabilities (1) Shareholders' Funds (a) Share Capital 4,000 Equity Shares of $100 each called $80 3,20,000 1,000 Preference Shares of $100 each called $70 70,000 (b) Reserves and Surplus: Surplus A/c (Negative Balance) (-) 1,00,000 (2) Non-current Liabilities Secured Loans Secured Loan from Bank on Building and Machinery 1,50,000 (3) Current Liabilities Trade Creditors 2,60,000 Total Equity and Liabilities 7,00,000 II. Assets (1) Non-Current Assets Fixed Assets 4,00,000 (2) Current Assets Books Debts 3,00,000 Total Assets 7,00,000 The assets realised as follows : 1-4-2016- Book Debts $1,00,000, expenses paid $4,000 ; 1-6-2016Fixed Assets (final) $3,00,000, Book Debts $ 1,00,000. 1-8-2016– Book Debts (final) $50,000. The Liquidator is entitled to 5% on collections from book debts and 2% on the amount paid to equity shareholders. Prepare the Liquidator's Final Statement of Account on the assumption that disbursements are made in accordance with law, as and when cash is available.

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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Subject: acounting
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Use the information given to fill out balance sheet completely
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