X Ltd. went into liquidation on 31 March 2011, when its position was as follows:
|
Liabilities
|
|
Assets
|
|
|
40,000 Equity
|
|
Factory Shed
|
1,40,000
|
|
Shares of ? 10
|
|
(Rs. 1,00,000)
|
|
|
Each, ? 8 per
|
|
Plant &
|
2,00,000
|
|
Share Called Up:
|
|
Machinery
|
|
|
Z 3,20,000
|
|
(Rs. 1,70,000)
|
|
|
Less:Calls-in- area Rs. 10 000
|
3,10,000
|
Furniture
(Rs. 14,000)
|
24,000
|
|
11% Preference
|
2,00,000
|
Investments
|
40,000
|
|
Shares of Rs. 100
|
|
(Rs. 36,000)
|
|
|
Each Fully Paid
|
|
|
|
|
13% Debentures
|
1,50,000
|
Stock
|
1,30,000
|
|
(Secured by a
|
|
(Rs. 1,10,000)
|
|
|
Floating Charge on All Assets
|
|
Debtors
(Rs. 3,00,000)
|
3,70,000
|
|
Other than Calls- in-Arrear
|
Cash
|
|
20,000
|
|
Bank Overdraft
|
80,000
|
Preliminary
|
16,000
|
|
(Secured Against
|
|
Expenses
|
|
|
Hypothecation of Stock)
|
|
P&L A/c
|
2,00,000
|
|
Loan from ICICI
|
2,00,000
|
|
|
|
(Secured by a
|
|
|
|
|
Second Charge on Stock and
a First Charge on Plant &
|
|
|
|
|
Machinery)
|
|
|
|
|
Trade Creditors
|
1,20,000
|
|
|
|
Outstanding
|
80,000
|
|
|
|
Expenses
|
|
|
|
|
|
11,40,000
|
|
11,40,000
|
Contingent liabilities:
|
(i) Preference dividends
|
Rs.44,000
|
|
(ii) Bills discounted
|
Rs.30,000
|
Estimated realizable value of assets have been indicated in brackets. Three years earlier, the company had a general reserve of Rs.30,000. The company earned a profit ofRs.60,000 for one of the three years. Rs.50,000 had been paid as income tax in this period and a dividend of 10% on equity shares paid in one of the years. For another year, the Company incurred a loss of Rs.1,60,000.
Rs.9,000 out of the outstanding expenses is preferential. Bills discounted on likely to be dishonoured Rs.16,000. Prepare statement of affairs and deficiency account on the basis that the Company decides on a voluntary liquidation.