Illustration 6 Prakash Processors Ltd. went into voluntary liquidation on 31st December, 2010 when their Balance Sheet read as follows:- Liabilities Issued and subscribed capital 5,000 10% cumulative preference shares of 100 each, fully paid 5,00,000 2,500 equity shares of 100 each, 775 paid 1,87,500 7,500 equity shares of 100 each, 760 paid 4,50,000 15% Debentures secured by a floating charge 2,50,000 127 * 3/103 2,50,700 (i.e. 5,32,000 less payments made to all creditors) ** It is assumed that loan is secured by a floating charge. Interest outstanding on Debentures 37,500 Creditors 3.18,750 17,43,750 Assets Land and Building 2,50,000 Machinery and Plant 6,25,000 Patents 1,00,000 Stock 1,37,500 Trade receivables 2,75,000 Cash at Bank 75,000 Profit and Loss A/C 2,81,250 17,43,750 Preference dividends were in arrears for 2 years and the creditors included Preferential creditors of 38,000. The assets realised as follows: Land and Building * 3,00,000; Machinery and Plant 75,00,000; Patents 75,000; Stock 1,50,000; Trade receivables 2,00,000 The expenses of liquidation amounted to 727,250. The liquidator is entitled to a commission of 3% on assets realised except cash. Assuming the final payments including those on debentures is made on 30th June, 2011 show the liquidator's Statement of Account