**Liquidation's Final Statement of Account**

The Final Statement of Account in liquidation refers to a summary of the financial transactions and the distribution of assets during the liquidation process. It is prepared at the end of the liquidation process to provide a detailed breakdown of how the assets of the company were distributed among the creditors and shareholders.

**Preparation of the Final Statement of Account:**

The Final Statement of Account is prepared by the liquidator, who is appointed to oversee the winding up of the company. The liquidator's primary responsibility is to collect and sell the company's assets, pay off the creditors' claims, and distribute any remaining funds to the shareholders.

The steps involved in preparing the Final Statement of Account are as follows:

1. **Asset Realization:** The liquidator identifies and collects all the company's assets, including cash, inventory, equipment, and any outstanding debts owed to the company.

2. **Liability Settlement:** The liquidator then settles the company's liabilities by paying off the creditors' claims. This includes payments to secured and unsecured creditors, employees, tax authorities, and any other outstanding debts.

3. **Distribution to Shareholders:** After settling the liabilities, the liquidator distributes any remaining funds to the shareholders of the company. The distribution is usually based on the proportion of shares held by each shareholder.

4. **Preparation of Final Statement:** Once all the assets have been realized, liabilities settled, and distributions made, the liquidator prepares the Final Statement of Account. This statement provides a detailed summary of all the financial transactions and distributions made during the liquidation process.

**Imaginary Figure of Liquidation's Final Statement of Account:**

The Final Statement of Account typically includes the following information:

1. **Opening Balance:** The statement starts with the opening balance of the company, which includes the value of the assets and liabilities at the beginning of the liquidation process.

2. **Realization of Assets:** The statement includes details of the assets sold or otherwise realized during the liquidation, along with the proceeds generated from these sales.

3. **Settlement of Liabilities:** It provides a breakdown of the payment made to each creditor, including the amount paid and the nature of the claim.

4. **Distribution to Shareholders:** The statement shows the distribution made to the shareholders, including the amount distributed to each shareholder based on their shareholding.

5. **Closing Balance:** Finally, the statement shows the closing balance, which represents the remaining assets (if any) after settling all the liabilities and making the necessary distributions.

The Final Statement of Account is an essential document in the liquidation process as it provides transparency and accountability regarding the distribution of assets. It helps stakeholders, including creditors and shareholders, understand how the company's assets were utilized and how the proceeds were distributed.