Problem 20Bekar Limited went into voluntary liquidation. The details regarding liquidation are as follows:Share capital :1. 2,000 8% preference shares of $ 100 each (fully paid-up)2. Class A-2,000 equity shares of $ 100 each ( $ 75 paid-up)3. Class B-1,600 equity shares of $ 100 each ( $ 60 paid-up)4. Class C-1,400 equity shares of $ 100 each ( 50 paid-up)Assets including machinery realised $ 4,20,000. Liquidation expenses amount to $ 15,000. BekarLimited has borrowed a loan of $ 50,000 from Patel Brothers against the mortgage of machinery(which realised $ 80,500). In the books of the company salaries of four clerks for four months at a rateof $ 250 per month and salaries of four peons for three months at a rate of $ 150 per month, areoutstanding. In addition to this, the company's books show the creditors worth $ 88,200. PrepareLiquidator's Statement of Receipts and Payments.

Liquidation Statement prepares for the accounting of liquidation relating receipts and payment.

Answered: Problem 20 Bekar Limited went into…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter19: Corporations: Distributions Not In Complete Liquidation

Section: Chapter Questions

Problem 54P

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