i23 Illustration 2 From the following particulars, prepare a statement of Affairs and the Deficiency Account for submission to the official liquidator of the Equipment Ltd., which went into liquidation on December 31, 2012: 2,40,000 1,00,000 15.000) 95.000 3,000 equity shares of 100 each, 780 paid-up 6% 1,000 preference shares of 100 each fully paid-up Less : Calls in arrear 5% Debentures having a floating charge on the assets interest paid upto June 30, 2012) Mortgage on Land & Buildings Trade Creditors Owing for wages Secretary's salary @ 500p.m.) owing Managing Director's salary (@ 71,500 p.m.) owing 1,00,000 80,000 2,65,500 20,000 3.000 6,000 Assets Estimated Book value to produce 7 Land & Building 1.30.000 1,20,000 Plant 1,30,000 2,00,000 Tools 4,000 20.000 Patents 30,000 50.000 Stock 74,000 87.000 Investments in the hands of a Bank for an overdraft of 1,90.000 1,70,000 1,80.000 Book Debts 60,000 90.000 On 31st December, 2007 the balance sheet of the company showed a general reserve of *40,000 accompanied by a debit balance of 725,000 in the Profit & Loss Account In 2008 the company made a profit of 740.000 and declared a dividend of 10% on equity shares. The company suffered a total loss of 1,09,000 besides loss of stock due to fire of 340,000 during 2009, 2010 and 2011. For 2012 accounts were not made. The cost of winding up is expected to be 715,000