Model: Statement of affairs and deficiency account Mr. Eswar is appointed liquidator of a company in voluntary liquidation on 1 July 2010 and the following balances are extracted from the books on that date:
| Liabilities | Assets | ||
| Share Capital: | Machinery | 1,20,000 | |
| 32,000 Shares of ? 10 Each | 3,20,000 | Leasehold Properties | 1,60,000 |
| Provision for Bad Debts | 40,000 | Stock in Trade | 4,000 |
| Debentures | 2,00,000 | Book Debts | 2,40,000 |
| Bank Overdraft | 72,000 | Investments | 24,0000 |
| Liabilities for Purchases | 80,000 | Calls-in-Arrears | 20,000 |
| Cash in Hand | 4,000 | ||
| Profit & Loss A/c | 1,40,000 | ||
| 7,12,000 | 7,12,000 |
The assets are revalued as follows:
| Investments at | Rs.16,000 |
| Stock in trade at | Rs.8,000 |
| Machinery at | Rs.2,40,000 |
| Leasehold properties at | Rs.2,92,000 |
Bad debts are Rs.8,000; Doubtful debts are Rs.16,000, estimated to realize Rs.8,000.
The bank overdraft is secured by deposit of title deeds of leasehold properties.
Preferential creditors for tax and wages are Rs.4,000.
Telephone rent owing is Rs.320.
You are required to prepare:
- Statement of affairs as regards creditors and contributories
- Deficiency/surplus account
