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The balance sheet of sushil LTD as at 31-3-2013 as follows the company went into liquidation on that date. Prepare liquidation final statement of account after taking into account the following. Liquidation expense and liqiidater remuneration amount 3000 and 10000respectively? bank loan was secured by pledge of stock.debenture and interest Theron are secured by a floating charges on all assest.fixed assest were realised at book values and current assets at 80/ of book values.?
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The balance sheet of sushil LTD as at 31-3-2013 as follows the company...
Balance Sheet of Sushil Ltd as at 31-3-2013
Assets
- Fixed Assets
- Current Assets
- Stock
- Debtors
- Cash and Bank Balance
- Total Assets
Liabilities
- Capital
- Bank Loan
- Debentures
- Creditors
- Total Liabilities
Liquidation Final Statement of Account
1. Liquidation Expenses and Liquidator Remuneration
The liquidation process involves various expenses, including legal fees, administrative costs, and the remuneration paid to the liquidator for their services. In this case, the liquidation expenses amount to $3,000, and the liquidator's remuneration is $10,000.
2. Bank Loan
The bank loan was secured by the pledge of stock. This means that the bank had the right to take possession of the stock in case of default on the loan. The value of the stock would be used to repay the bank loan in the liquidation process.
3. Debentures and Interest
The debentures and the interest thereon are secured by a floating charge on all assets. A floating charge is a type of security interest that allows the debenture holders to claim the assets of the company in case of default. The value of the assets would be used to repay the debentures and the accrued interest.
4. Realization of Fixed Assets
The fixed assets of the company are realized at their book values. Realization refers to the process of selling the assets and converting them into cash. The cash received from the sale of fixed assets would be used to repay the liabilities of the company.
5. Realization of Current Assets
The current assets of the company, including stock and debtors, are realized at 80% of their book values. This means that the value of these assets is reduced by 20% in the liquidation process. The reduced value of the current assets would be used to repay the liabilities of the company.
6. Preparation of Final Statement of Account
To prepare the liquidation final statement of account, we need to adjust the values of assets and liabilities based on the above considerations. The adjusted values would then be used to determine the net value available for distribution to various stakeholders, including creditors and shareholders.
7. Distribution of the Remaining Assets
After repaying the liabilities, the remaining assets would be distributed among the shareholders according to their respective ownership interests. The distribution would be made in proportion to the shareholders' holdings in the company.
Conclusion
The liquidation final statement of account provides a summary of the financial position of the company at the time of liquidation. It takes into account the liquidation expenses, the realization of assets, and the repayment of liabilities. The statement helps in determining the net value available for distribution to stakeholders and ensures a fair and orderly winding up of the company's affairs.
Assets
- Fixed Assets
- Current Assets
- Stock
- Debtors
- Cash and Bank Balance
- Total Assets
Liabilities
- Capital
- Bank Loan
- Debentures
- Creditors
- Total Liabilities
Liquidation Final Statement of Account
1. Liquidation Expenses and Liquidator Remuneration
The liquidation process involves various expenses, including legal fees, administrative costs, and the remuneration paid to the liquidator for their services. In this case, the liquidation expenses amount to $3,000, and the liquidator's remuneration is $10,000.
2. Bank Loan
The bank loan was secured by the pledge of stock. This means that the bank had the right to take possession of the stock in case of default on the loan. The value of the stock would be used to repay the bank loan in the liquidation process.
3. Debentures and Interest
The debentures and the interest thereon are secured by a floating charge on all assets. A floating charge is a type of security interest that allows the debenture holders to claim the assets of the company in case of default. The value of the assets would be used to repay the debentures and the accrued interest.
4. Realization of Fixed Assets
The fixed assets of the company are realized at their book values. Realization refers to the process of selling the assets and converting them into cash. The cash received from the sale of fixed assets would be used to repay the liabilities of the company.
5. Realization of Current Assets
The current assets of the company, including stock and debtors, are realized at 80% of their book values. This means that the value of these assets is reduced by 20% in the liquidation process. The reduced value of the current assets would be used to repay the liabilities of the company.
6. Preparation of Final Statement of Account
To prepare the liquidation final statement of account, we need to adjust the values of assets and liabilities based on the above considerations. The adjusted values would then be used to determine the net value available for distribution to various stakeholders, including creditors and shareholders.
7. Distribution of the Remaining Assets
After repaying the liabilities, the remaining assets would be distributed among the shareholders according to their respective ownership interests. The distribution would be made in proportion to the shareholders' holdings in the company.
Conclusion
The liquidation final statement of account provides a summary of the financial position of the company at the time of liquidation. It takes into account the liquidation expenses, the realization of assets, and the repayment of liabilities. The statement helps in determining the net value available for distribution to stakeholders and ensures a fair and orderly winding up of the company's affairs.
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The balance sheet of sushil LTD as at 31-3-2013 as follows the company went into liquidation on that date. Prepare liquidation final statement of account after taking into account the following. Liquidation expense and liqiidater remuneration amount 3000 and 10000respectively? bank loan was secured by pledge of stock.debenture and interest Theron are secured by a floating charges on all assest.fixed assest were realised at book values and current assets at 80/ of book values.?
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The balance sheet of sushil LTD as at 31-3-2013 as follows the company went into liquidation on that date. Prepare liquidation final statement of account after taking into account the following. Liquidation expense and liqiidater remuneration amount 3000 and 10000respectively? bank loan was secured by pledge of stock.debenture and interest Theron are secured by a floating charges on all assest.fixed assest were realised at book values and current assets at 80/ of book values.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about The balance sheet of sushil LTD as at 31-3-2013 as follows the company went into liquidation on that date. Prepare liquidation final statement of account after taking into account the following. Liquidation expense and liqiidater remuneration amount 3000 and 10000respectively? bank loan was secured by pledge of stock.debenture and interest Theron are secured by a floating charges on all assest.fixed assest were realised at book values and current assets at 80/ of book values.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The balance sheet of sushil LTD as at 31-3-2013 as follows the company went into liquidation on that date. Prepare liquidation final statement of account after taking into account the following. Liquidation expense and liqiidater remuneration amount 3000 and 10000respectively? bank loan was secured by pledge of stock.debenture and interest Theron are secured by a floating charges on all assest.fixed assest were realised at book values and current assets at 80/ of book values.?.
The balance sheet of sushil LTD as at 31-3-2013 as follows the company went into liquidation on that date. Prepare liquidation final statement of account after taking into account the following. Liquidation expense and liqiidater remuneration amount 3000 and 10000respectively? bank loan was secured by pledge of stock.debenture and interest Theron are secured by a floating charges on all assest.fixed assest were realised at book values and current assets at 80/ of book values.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about The balance sheet of sushil LTD as at 31-3-2013 as follows the company went into liquidation on that date. Prepare liquidation final statement of account after taking into account the following. Liquidation expense and liqiidater remuneration amount 3000 and 10000respectively? bank loan was secured by pledge of stock.debenture and interest Theron are secured by a floating charges on all assest.fixed assest were realised at book values and current assets at 80/ of book values.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The balance sheet of sushil LTD as at 31-3-2013 as follows the company went into liquidation on that date. Prepare liquidation final statement of account after taking into account the following. Liquidation expense and liqiidater remuneration amount 3000 and 10000respectively? bank loan was secured by pledge of stock.debenture and interest Theron are secured by a floating charges on all assest.fixed assest were realised at book values and current assets at 80/ of book values.?.
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The balance sheet of sushil LTD as at 31-3-2013 as follows the company went into liquidation on that date. Prepare liquidation final statement of account after taking into account the following. Liquidation expense and liqiidater remuneration amount 3000 and 10000respectively? bank loan was secured by pledge of stock.debenture and interest Theron are secured by a floating charges on all assest.fixed assest were realised at book values and current assets at 80/ of book values.?, a detailed solution for The balance sheet of sushil LTD as at 31-3-2013 as follows the company went into liquidation on that date. Prepare liquidation final statement of account after taking into account the following. Liquidation expense and liqiidater remuneration amount 3000 and 10000respectively? bank loan was secured by pledge of stock.debenture and interest Theron are secured by a floating charges on all assest.fixed assest were realised at book values and current assets at 80/ of book values.? has been provided alongside types of The balance sheet of sushil LTD as at 31-3-2013 as follows the company went into liquidation on that date. Prepare liquidation final statement of account after taking into account the following. Liquidation expense and liqiidater remuneration amount 3000 and 10000respectively? bank loan was secured by pledge of stock.debenture and interest Theron are secured by a floating charges on all assest.fixed assest were realised at book values and current assets at 80/ of book values.? theory, EduRev gives you an
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