Accounts

Modern Education Society’s
NESS WADIA COLLEGE OF COMMERCE,

PUNE 411001
Name of the students………………………………………………………............................

Class & Division ……………………… Roll No……………….
Subject : Corporate Accounting SEM IV Submission Date:…………………..
Project on Liquidation
Following is the Balance Sheet of Infotch Ltd. for the year Ended 31st March, 2023.
Liabilities Rs. Assets Rs.
Share Capital Goodwill 8,40,000
12,000 Equity Shares of 12,00,000 Land & Building 16,35,000
Rs.100/-each fully paid Plant & Machinery 6,75,000
17,500 Equity Shares of 15,75,000 Furniture 75,000
Rs. 100/-each Rs. 90 paid up Office Equipment 1,50,000
7,500,8% Preference Shares 7,50,000 Stock 7,42,500
of Rs.100 each fully paid Debtors 6,37,500
8% Debentures (floating 7,50,000 Bills Receivable 1,65,000
charge on all assets) Cash in Hand 60,000
Outstanding Debenture Interest 30,000 Profit & Loss A/c 5,25,000
Creditors 12,00,000
55,05,000 55,05,000
The company went into voluntary liquidation on 31st March, 2023:
a) The Preference dividend was in arrears for 3 years and as per the articles it was to be
returned before returning the equity capital
b) Sundry creditors include a loan of Rs. 3,00,000 secured on hypothecation of Plant and
Machinery and Preferential Creditors of Rs. 75,000.
c) The Liquidator realized the assets as follows:
Particulars Rs.
Land & Building 16,12,500
Plant & Machinery 3,75,000
Furniture 60,000
Office Equipment 97,500
Stock 5,25,000
Debtors 4,50,000
Bills Receivable 1,05,000
d) Legal Charges on liquidation amounted Rs. 7,500 and the liquidation expenses were
Rs.10,000.
e) The Liquidator’s remuneration was fixed at Rs. 7,500 plus 2% on sale of assets plus 2%
on the amount distributed to unsecured creditors (including preferential creditors)
Prepare Liquidator’s Final Statement of Accounts if all payments were made on 31st
March 2023
The Balance Sheet of Ashoka Ltd., Pune as on 31st March, 2022 is as follows :
Balance Sheet as on 31st March, 2022
Share Capital Land & Building 2,00,000
1,000 6% Preference Shares 1,00,000 Plant & Machinery 2,20,000
of Rs. 100 each
2,000 Equity Shares of 2,00,000 Stock 1,00,000
Rs. 100 each fully Paid
3,000 Equity Shares of 1,50,000 Debtors 1,00,000
Rs. 100 each, Rs. 50 Paid
6% Debentures 1,00,000 Cash at Bank 30,000
(Floating charge on all assets)
Bank Loan (Secured on 1,00,000 Preliminary Expenses 40,000
Land & Building)
Sundry Creditors 90,000 Profit and Loss A/c 60,000
Income Tax 10,000
7,50,000 7,50,000
The company went into liquidation on 31st March, 2022. The preference dividend was in
arrears for three years as per article it was to be paid. The arrears are payable on liquidation.
The assets were realized as follows :
Land & Building Rs.2,40,000, Plant & Machinery Rs 1,80,000, Stock Rs.70,000 and Debtors
Rs. 60,000.
The Expenses of liquidation amounted to Rs. 8,000. The liquidator is entitled to a remuneration
@2% on all assets realized and 3% on amount distributed to unsecured Creditors including
preferential creditors. All payments made on 1st October, 2022.
Sairaj Ltd., Pune went into liquidation on 31st March 2018. Its Balance Sheet as on that date
was as under :
Balance Sheet as on 31st March 2018
Liabilities ` Assets `
Share Capital Land and Building 2,50,000
5,000 Preference shares of Plant and Machinery 6,25,000
100 each 5,00,000 Patents 1,00,000
2,500 Equity shares of 100 Stock 1,37,500
each 75 paid up 1,87,500 Debtors 2,75,000
7,500 Equity shares of Cash 75,000
100 each, 60 paid up 4,50,000 Profit and Loss A/c 2,40,000
5% Mortgage Debentures 2,50,000 Discount on issue of 5%
Outstanding Interest on
Debentures 12,500 Mortgage Debentures 50,000
Creditors 3,62,500 Underwriting 10,000
Commission
17,62,500 17,62,500
The liquidator is entitled to remuneration at 3% on all assets realised including surplus from
security except cash and 2% on the amount distributed to unsecured creditors other than
preferential creditors. Creditors include preferential creditors amounting to 37,500 and a loan
for 1,25,000 secured by mortgage on Land and Building.
The assets realised were as under :
Land and Building 3,00,000, Plant and Machinery 5,00,000, Patents 75,000, Stock 1,50,000
and Debtors 2,00,000.
Expenses of Liquidation amounted to 17,250 and Legal expenses were 10,000.
Prepare the Liquidators Final Statement of Account.
Following is the Balance sheet of Arya Co. Ltd. as on 31.03.2017.
Share capital Goodwill 1,68,000

30,000 Equity Shares of Rs. 10/- Land & Building 3,27,000
each, Rs. 8 paid-up 2,40,000 Plant & Machinery 1,35,000
45,000 Equity Shares of Rs. 10/- Furniture 15,000
each, Rs. 7 paid-up 3,15,000 Office Equipment 30,000
15,000, 8% Preference Shares of Stock 1,48,500
Rs. 10/- each fully paid 1,50,000 Debtors 1,27,500
8% Debentures (having floating Bills Receivable 33,000
charge on all assets) 1,50,000 Cash in Hand 12,000
Outstanding Debenture Interest 6,000 Profit & Loss A/c 1,05,000
Creditors 2,40,000
11,01,000 11,01,000
The Company went in to voluntary liquidation as on the Balance Sheet date.
 Preference dividend was in arrears for the last 3 years and it was to be returned before
returning equity share capital
 Creditors include a loan from bank of Rs.60,000 secured on the hypothecation of Plant and
Machinery.
 Creditors also include preferential creditors of Rs. 15,000.
 The liquidator realized the assets as follows:
Land and Building Rs. 3,22,500, Plant & Machinery Rs. 75,000, Office Equipment Rs.
19,500,Furniture Rs. 12,000, Stock Rs.l,05,000, Debtors Rs. 90,000 and Bills Receivable
Rs. 21,000
 Legal Charges on Liquidation amounted Rs. 1,500
 The liquidation expenses were Rs. 3,900
 The Liquidators remuneration was fixed at Rs. 1,500 plus 2% on sale of assets excluding
cash plus 4% on the amount distributed to unsecured creditors including preferential
creditors.
The liquidator made all payments on 31st March, 2017 Prepare Liquidator’s Final
Statement of Accounts
Shruti Ltd. went into voluntary liquidation on 31st March 2018 when its Balance sheet was
as follows.
Balance Sheet
As on 31-3-2018
Liabilities Amount Assets Amount
Rs. Rs.
Share Capital Goodwill 40,000

9,400 Equity shares of Leasehold property 54,000
Rs. 20 each 1,88,000 Machinery 1,52,000
Bank overdraft 90,000 Vehicles 30,000
(Unsecured) Stock 82,000
Sundry Creditors Debtors 74,000
a) Preferential 7,400 Cash in hand 14,000
b) Partly secured 60,800 Profit and loss A/c 42,000
c) Unsecured 1,41,800
2,10,000
4,88,000 4,88,000
 The liquidator realized the assets as follows.

 leasehold property which was used to Pay Party Secured Creditors Rs. 44,000
 Machinery Rs. 1,28,000
 Vehicles Rs. 20,000
 Stock Rs. 1,20,000
 Debtors Rs. 70,000
 The expenses of liquidation amounted to Rs. 3,800.
 Liquidator's Remuneration was fixed at 3% on assets realized except cash and 10% on the
amount returned to the equity shareholders.
 You are required to prepare the liquidator's final statement of Account.

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Modern Education Society’s

NESS WADIA COLLEGE OF COMMERCE,

Name of the students………………………………………………………............................

Share capital Goodwill 1,68,000

Share Capital Goodwill 40,000

 The liquidator realized the assets as follows.

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