S.Co went into liquidation on 1/1/2014. The liquidator whose remuneration is 3% on all assets realized and 2% on amount distribution to shareholders (preference and equity) realized all the assets for $1,00,000. Expense of liquidation $18,000 Unsecured creditors (including salary and wages outstanding $ 12,000 $1,36,000. 10,000 6% preference shares of $30 each (dividend paid up to 31/12/2004) $3,00,000. 20,000 equity shares of $10 each $9 per share are called and paid $1,80,000. General reserve $2,40,000 Profit and loss $40,000 Under Article of association of the company the preference shares have the right to receive 1/3 of the surplus after repaying the equity share capital. Prepare Liquidators Final statement of account.
S.Co went into liquidation on 1/1/2014. The liquidator whose remuneration is 3% on all assets realized and 2% on amount distribution to shareholders (preference and equity) realized all the assets for $1,00,000. Expense of liquidation $18,000 Unsecured creditors (including salary and wages outstanding $ 12,000 $1,36,000. 10,000 6% preference shares of $30 each (dividend paid up to 31/12/2004) $3,00,000. 20,000 equity shares of $10 each $9 per share are called and paid $1,80,000. General reserve $2,40,000 Profit and loss $40,000 Under Article of association of the company the preference shares have the right to receive 1/3 of the surplus after repaying the equity share capital. Prepare Liquidators Final statement of account.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 6MCQ: Ames Corporation repurchases 10,000 shares of its common stock for $12 per share. The shares were...
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S.Co went into liquidation on 1/1/2014.
The liquidator whose remuneration is 3% on all assets realized and 2% on amount distribution to shareholders (preference and equity) realized all the assets for $1,00,000.
Expense of liquidation $18,000
Unsecured creditors (including salary and wages outstanding $ 12,000 $1,36,000.
10,000 6% preference shares of $30 each (dividend paid up to 31/12/2004) $3,00,000.
20,000 equity shares of $10 each
$9 per share are called and paid $1,80,000.
General reserve $2,40,000
Profit and loss $40,000
Under Article of association of the company the preference shares have the right to receive 1/3 of the surplus after repaying the equity share capital.
Prepare Liquidators Final statement of account.
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