NUMBER FOUR (a) (b) List and explain briefly the powers of liquidator marks) Panama Ltd makes its accounts each year 31 October and has been trading at a loss. On 31 October 2002, a resolution for a voluntary liquidation was passed. The balance sheet as at that date was as follows. Non Current assets Freehold property Plant and machinery Current assets: Sh. Sh. Sh. '000' '000' '000' 11,00 0 2,750 Stock Debtors 8,750 13,75 13,375 0 Cash 125 22,250 Current liabilities: Bank overdraft 3,750 Creditors 11,250 Interest payable (5% debentures) 500 (15,500 2 Paid up capital: 6,750 20,50 10,000 10% cumulative preference shares of Sh.500 each fully paid 25,000 Ordinary shares of Sh.500 each fully paid 10,000 Ordinary shares of Sh.500 each. Sh.250 paid. Revenue reserves: profit and loss account Non Current liabilities: 5% debentures 5,000 12,50 2,500 20,00 (9,500 ) 10,00 0 20,50 0 Additional information: 1. The debentures are secured by a floating charge on the asset and undertaking of the company. 2. The bank overdraft is secured by a fixed charge on the company's freehold property. Accrued expenses Administration expenses 2,840 23,460 Cash and demand deposits 22,640 Change in market value of 4,820 investments 4,940 Lump sum retirement benefits 36,480 Contributions due in 30 days 18,240 Normal contributions by: 3,150 Employer Employees 1,860 Transfer in from other schemes 47,400 Individual transfers out to other 132,320 schemes 263,605 Investment income 4,560 Immovable property 7,640 Government securities (long- 87,835 term) 19,900 Members' voluntary 320 contributions Pension Equity investments: Quoted Unquoted Unpaid benefits 571,950 571,950 Required: (1) Statement of changes in net assets for the year ended 31 October 2002. (8 marks) (i) Statement of net assets as at 31 October 2002. (7 marks) (Total: 20 marks) 6