Debit Side of Liquidator's Final Statement of Account

The liquidator's final statement of account is prepared at the end of the liquidation process to summarize the financial transactions and activities undertaken during the winding-up of a company. It provides a detailed account of the company's assets, liabilities, and the distribution of funds to the various stakeholders involved. The debit side of the statement represents the sources of funds available to the liquidator, which are used to settle the company's liabilities and distribute any remaining funds to the creditors and shareholders.

Items that appear on the debit side of the liquidator's final statement of account:

A) Surplus from secured creditors:
- Secured creditors have a priority claim over the company's assets and are entitled to be repaid before other creditors.
- If the liquidator has realized more funds from the sale of secured assets than the amount owed to the secured creditors, the surplus amount is recorded on the debit side of the statement.
- This surplus is available to meet the company's unsecured debts and other expenses of the liquidation process.

B) Cash on hand:
- Cash on hand refers to the amount of money available in the company's bank account, petty cash, or any other form of cash held by the liquidator.
- This amount represents the immediate funds that can be utilized by the liquidator to settle outstanding liabilities or distribute to the creditors.

C) Bank:
- Bank refers to the funds held in the company's bank accounts.
- These funds may include the proceeds from the sale of assets, recoveries from debtors, or any other cash deposits made during the liquidation process.
- The bank balance represents the liquidator's available funds for the settlement of liabilities and distributions.

D) Assets realized:
- Assets realized refers to the total value of the company's assets that have been sold or otherwise converted into cash during the liquidation process.
- This includes the proceeds from the sale of inventory, plant and equipment, investments, and any other assets disposed of by the liquidator.
- The amount realized from the assets is recorded on the debit side of the statement as a source of funds available for distribution to the stakeholders.

In conclusion, the debit side of the liquidator's final statement of account includes the surplus from secured creditors, cash on hand, bank balances, and the value of assets realized. These items represent the sources of funds available to the liquidator for the settlement of liabilities and the distribution of remaining funds to the creditors and shareholders.