1.

A liquidator is entitled to receive remuneration at 2% of the assets realised and 3% of the

amount distributed among the unsecured creditors. The assets realised ₹ 25,00,000 against
which the payment was made as follows
Liquidation expenses ₹ 25,000. Preferential creditors ₹ 75,000 and secured creditors ₹ 10,00,000
Calculate the remuneration payable to liquidator

2. Balance sheet of Sona limited as on 31st December 2004

Liabilities ₹ Assets ₹
Paid up capital Fixed assets
1000, 6% preference shares of Land and building 200,000
₹100 each 100,000 Plant and machinery 220,000
2000 equity shares of ₹100 each Current assets
Fully paid 200,000 Stock 100,000
3000 equity shares of₹100 each Debtors 100,000
₹50 paid 150,000 Cash at bank 30,000
Secured loan Miscellaneous
6% debentures (floating charge expenditure 100,000
on all assets) 100,000 Profit and loss account
Others-
Mortgage on land and building 100,000
Current liabilities
Sundry creditors 90,000
Income tax 10,000
750,000 750,000
The company went into liquidation on 1st January 2005
The preference dividend was in arrear for 3 years. The arrears are payable on liquidation
The assets where realise as follows
Land and building ₹240,000, Plant and machinery ₹180,000, Stock ₹70,000, Debtors ₹60,000
The expenses of liquidation amounted to ₹ 8,000
The liquidator is entitled to a commission of 2% on all assets realised and 3% on amounts
distributed to unsecured. All payments were made on 30 th June 2005
Prepare liquidators statement of account

3. Prakash processes limited went into voluntary liquidation on 31 st December 2004 when their
balance sheet read as follows
Liabilities ₹ Assets ₹
Issued and subscribed capital Land and buildings 250,000
5000 10% cumulative preference Plant and machinery 625,000
shares of ₹100 each fully paid 500,000 Patents 100,000
2500 equity shares of₹100 each Stock 137,500
₹75 paid 187,500 Sundry debtors 275,000
7500 equity shares of₹100 each Cash at Bank 75,000
₹60 paid 450,000 Profit and loss account 281,250
15% debenture secured by
floating charge 250,000
Interest outstanding on
debentures 37,500
Creditors 318,750
17,43,750 17,43,750
Preference dividend swear in arrears for 2 years and the creditors included preferential
creditors of₹38,000. The assets realised as follows
Land and buildings ₹ 3,00,000 Machinery and plant ₹ 5,00,000 Patent 75,000 Stock 1,50,000
Sundry debtors ₹ 2,00,000.The expenses of liquidation amounted to ₹ 27,250
The liquidator is entitled to a commission of 3% on assets realised except cash
Assuming the final payments including those on debenture is made on 30 th June 2005 show the
liquidator’s final statement of account

4. The balance sheet of bubble limited as on 31st December 2004 was as follows
Liabilities ₹ Assets ₹
Share capital Land and buildings 25,000
8000 preference shares of ₹ 10 Other fixed assets 2,00,000
each 80,000 Stock 5,25,000
 1200 equity shares of ₹ 10 1,20,000 Debtors 1,00,000
Bank loan 4,00,000 Profit and loss account 58,000
6% debentures 1,00,000
Interest outstanding on
debentures 8,000
Creditors 2,00,000
9,08,000 9,08,000
The company went into liquidation on that date. Prepare liquidator’s final statement of account
after taking into consideration the following:
1. Liquidation expenses and liquidator’s remuneration amounted to ₹ 3,000 and ₹ 10,000
respectively
2. Bank loan was secured by pledge of stock
3. Debentures and interest there on are secured by a floating charge on all assets
4. Fixed assets realised at book values and current assets at 80% of book values

5. Khaki Bawa private limited went into voluntary liquidation on April 1999 on which date its position
was as under
Liabilities ₹ Assets ₹
Share capital Land, building and machinery 80,000
5000 shares of ₹100 each, ₹80 Other fixed assets 260,000
per share paid 400,000 Stock 105,000
Loans (secured by mortgage of Debtors 100,000
land, building and machinery) 100,000 Loans 40,000
Unsecured loan and liabilities Cash 5,000
(including preferential dues Profit and loss account 110,000
₹10,000) 200,000
700,000 700,000
Land building and machinery were realised by secured creditors for ₹ 1,20,000 other fixed
assets fetched ₹ 40,000 ₹ 20,000 stock ₹ 10,000 loans where Holi bad the liquidator is entitled
to a fixed remuneration of ₹ 1,000 + 2% of the amount paid to unsecured creditors the
liquidators out of pocket expenses amounted to ₹ 1,000
Show liquidator’s statement of account

6. LT limited went into liquidation with the following liabilities

Secured creditors ₹ 40,000(securities realise ₹ 50,000) preferential creditors ₹ 1,200 and secured
creditors ₹ 61,000 liquidation expenses ₹ 500
The liquidator is entitled to a remuneration of 3% on the amount realised (including securities in
the hands of secured creditors) and 1.5% on the amount distributed to the unsecured creditors.
The various assets excluding securities in the hands of secured creditors realised ₹ 52,000.
Prepare liquidator’s statement of account showing the payment made to unsecured creditors.

7. The following is the balance sheet of Y limited as on 31 st March 1994

Liabilities ₹ Assets ₹
Share capital Fixed assets:
2000 equity shares of ₹ 100 Land and buildings 4,00,000
each 1,50,000 Plant and machinery 3,80,000
₹ 75 per share paid up Current assets:
6000 equity shares of ₹ 100 3,60,000 Stock at cost 1,10,000
each Sundry debtors 2,20,000
₹ 60 per share paid up 2,00,000 Cash at Bank 60,000
2000 10% preference shares of Profit and loss account 2,40,000
₹ 100 each fully paid up 2,00,000
10% debentures having a
floating charge on all assets 10,000
Interest accrued on debentures 4,90,000
also called as above
Sundry creditors
14,10,00 14,10,000
0
On that date, the company went into voluntary liquidation. The dividend of the preference
shares were in arrears for the last 2 years. Sundry creditors include a loan of ₹ 90,000 on
mortgage of land and buildings. The assets where realised as under
Land and buildings ₹ 3,40,000 Plant and machinery ₹ 3,60,000 stock 1,20,000 Sundry
debtors 1,60,000.
Interest accrued on loan on mortgage of building up to the date of payment amounted to ₹
10,000. The expenses of liquidation amounted to ₹ 4,600. The liquidator is entitled to a
remuneration of 3% on all the assets realised except cash at bank and 2% on the amount
distributed among equity shareholders. Preferential creditors included in sundry creditors
amount to ₹ 30,000. All payments were made on 30 th June 1994. Prepare the liquidators
final statement of account.