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Z Ltd. went into voluntary liquidation on 31st December, 2015. Balance Sheet of the company as on that date stood as follows: I. Equity and Liabilities $ 2$ (i) Share Capital 20,000, 10% Cumulative Preference Shares of 100 each, fully paid up 10,000 Equity Shares of $ 100 each, $ 75 paid up 30,000 Equity Shares of $ 100 each, $ 60 paid-up 20,00,000 7,50,000 18,00,000 45,50,000 (ii) Reserves and Surplus Surplus Account (Negative Balance) (iii) Non-current Liabilities 15% Debentures secured by a Floating Charge (iv) Current Liabilities Trade Payables Outstanding Interest on Debentures (11,25,000) 10,00,000 12,75,000 1,50,000 14,25,000 Total 58,50,000 II. Assets (i) Non-current Assets Land and Building Plant and Machinery Furniture and Fixtures 10,00,000 25,00,000 4,00,000 39,00,000 (ii) Current Assets Stock 5,50,000 11,00,000 3,00,000 Trade Receivables Cash and Bank Balance 19,50,000 Total 58,50,000 Other Information : (i) Preference share dividends are in arrears for the last two years. (ii) Trade payables include preferential creditors of $ 1,52,000. (iii) The assets were sold and realised as follows : Land and building $ 12,00,000; Plant and machinery $ 20,00,000; Furniture and fixtures $ 3,00,000; Stock $ 6,00,0003; Trade receivables $ 8,00,000. (iv) Expenses of liquidation were $ 1,09,000. (v) Liquidator is entitled to receive commission of 3% on assets realised except cash, (vi) Preference shareholders have right to dividend at the time of liquidation. (viii) The final payment incłuding those on debentures is made on 30th June, 2016. You are required to prepare Liquidator's Final Statement of Account.

Z Ltd. went into voluntary liquidation on 31st December, 2015. Balance Sheet of the company as on that date stood as follows: I. Equity and Liabilities $ 2$ (i) Share Capital 20,000, 10% Cumulative Preference Shares of 100 each, fully paid up 10,000 Equity Shares of $ 100 each, $ 75 paid up 30,000 Equity Shares of $ 100 each, $ 60 paid-up 20,00,000 7,50,000 18,00,000 45,50,000 (ii) Reserves and Surplus Surplus Account (Negative Balance) (iii) Non-current Liabilities 15% Debentures secured by a Floating Charge (iv) Current Liabilities Trade Payables Outstanding Interest on Debentures (11,25,000) 10,00,000 12,75,000 1,50,000 14,25,000 Total 58,50,000 II. Assets (i) Non-current Assets Land and Building Plant and Machinery Furniture and Fixtures 10,00,000 25,00,000 4,00,000 39,00,000 (ii) Current Assets Stock 5,50,000 11,00,000 3,00,000 Trade Receivables Cash and Bank Balance 19,50,000 Total 58,50,000 Other Information : (i) Preference share dividends are in arrears for the last two years. (ii) Trade payables include preferential creditors of $ 1,52,000. (iii) The assets were sold and realised as follows : Land and building $ 12,00,000; Plant and machinery $ 20,00,000; Furniture and fixtures $ 3,00,000; Stock $ 6,00,0003; Trade receivables $ 8,00,000. (iv) Expenses of liquidation were $ 1,09,000. (v) Liquidator is entitled to receive commission of 3% on assets realised except cash, (vi) Preference shareholders have right to dividend at the time of liquidation. (viii) The final payment incłuding those on debentures is made on 30th June, 2016. You are required to prepare Liquidator's Final Statement of Account.

FINANCIAL ACCOUNTING
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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Z Ltd. went into voluntary liquidation on 31st December, 2015. Balance Sheet of the company as on that date stood as follows : I. Equity and Liabilities $ (i) Share Capital 20,000, 10% Cumulative Preference Shares of 100 each, fully paid up 10,000 Equity Shares of $100 each, $ 75 paid up 30,000 Equity Shares of $ 100 each, $ 60 paid-up 20,00,000 7,50,000 18,00,000 45,50,000 (ii) Reserves and Surplus Surplus Account (Negative Balance) (iii) Non-current Liabilities 15% Debentures secured by a Floating Charge (iv) Current Liabilities Trade Payables Outstanding Interest on Debentures (11,25,000) 10,00,000 12,75,000 1,50,000 14,25,000 Total 58,50,000 II. Assets (i) Non-current Assets Land and Building Plant and Machinery Furniture and Fixtures 10,00,000 25,00,000 4,00,000 39,00,000 (ii) Current Assets Stock 5,50,000 11,00,000 3,00,000 Trade Receivables Cash and Bank Balance 19,50,000 Total 58,50,000 Other Information : (i) Preference share dividends are in arrears for the last two years. (ii) Trade payables include preferential creditors of $ 1,52,000. (iii) The assets were sold and realised as follows : Land and building $ 12,00,000; Plant and machinery $ 20,00,000; Furniture and fixtures $ 3,00,000; Stock $ 6,00,000; Trade receivables $ 8,00,000. (iv) Expenses of liquidation were $ 1,09,000. (v) Liquidator is entitled to receive commission of 3% on assets realised except cash, (vi) Preference shareholders have right to dividend at the time of liquidation. (viii) The final payment incłuding those on debentures is made on 30th June, 2016. You are required to prepare Liquidator's Final Statement of Account.
Transcribed Image Text:Z Ltd. went into voluntary liquidation on 31st December, 2015. Balance Sheet of the company as on that date stood as follows : I. Equity and Liabilities $ (i) Share Capital 20,000, 10% Cumulative Preference Shares of 100 each, fully paid up 10,000 Equity Shares of $100 each, $ 75 paid up 30,000 Equity Shares of $ 100 each, $ 60 paid-up 20,00,000 7,50,000 18,00,000 45,50,000 (ii) Reserves and Surplus Surplus Account (Negative Balance) (iii) Non-current Liabilities 15% Debentures secured by a Floating Charge (iv) Current Liabilities Trade Payables Outstanding Interest on Debentures (11,25,000) 10,00,000 12,75,000 1,50,000 14,25,000 Total 58,50,000 II. Assets (i) Non-current Assets Land and Building Plant and Machinery Furniture and Fixtures 10,00,000 25,00,000 4,00,000 39,00,000 (ii) Current Assets Stock 5,50,000 11,00,000 3,00,000 Trade Receivables Cash and Bank Balance 19,50,000 Total 58,50,000 Other Information : (i) Preference share dividends are in arrears for the last two years. (ii) Trade payables include preferential creditors of $ 1,52,000. (iii) The assets were sold and realised as follows : Land and building $ 12,00,000; Plant and machinery $ 20,00,000; Furniture and fixtures $ 3,00,000; Stock $ 6,00,000; Trade receivables $ 8,00,000. (iv) Expenses of liquidation were $ 1,09,000. (v) Liquidator is entitled to receive commission of 3% on assets realised except cash, (vi) Preference shareholders have right to dividend at the time of liquidation. (viii) The final payment incłuding those on debentures is made on 30th June, 2016. You are required to prepare Liquidator's Final Statement of Account.
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