NUMBER FOUR (a) The following is the summarised Balance Sheet of Kamatusa Ltd. as at 30 September 1992. Issued Share Capital Sh. Sh. 8,000 12% Preference Sundry Assets Buildings 3,532,000 800,000 Shares of Sh.100 fully Preliminary expenses 80,000 Paid 800,000 12,000 Ordinary shares of Sh.100 each, Sh.95 paid 1,140,000 Profit and Loss Account 568,000 11% Debentures 1,600,000 Loan on Mortgage 640,000 Bank Account Creditors (including Sh.160,000 for tax) 200,000 600,000 4.980.000 4.980.000 The mortgage was secured on the buildings and the debentures were secured by a floating charge on the "Sundry Assets". Due to the inability of Kamatusa Ltd. to service its debenture obligations, the debenture holders appointed a receiver who took charge of some of the "Sundry Assets" amounting to Sh.2,520,000. A liquidator was also appointed as the company went into a voluntary liquidation. The receiver realised the assets for Sh.2,520,000. A liquidator was also appointed as the company went into a voluntary liquidation. The receiver realised the assets for Sh.2,360,000 and expenses and remuneration were Sh.12,000 and Sh.16,000. Buildings were sold for Sh.720,000 and Sh.1,160,000 was received from the sale of the remaining sundry assets. The bank had the guarantee of Kamatusa Ltd. directors (personal) amounting to Sh.176,000 which was duly honoured by them. The costs of the liquidation were Sh.24,000 and the Liquidators remuneration amounted to Shs. 10,000. All transactions were completed by 31 December 1992. Required: i) Receivers Receipts and Payments Account. ii) Liquidator's Fund Statement of Account (5 marks) (11 marks) b) State the circumstances in which a company may be voluntarily liquidated in Kenya. NUMBER FIVE a) State two main ways of constituting a trust. Give appropriate examples b) (4 marks) (Total: 20 marks) (4 marks) i) Five years ago Atieno bought a house in the name of his friend Adhiambo in order to conceal the ownership of the house. Adhiambo is now claiming the house as his own. Required: What is the position on ownership of the house? Would the position be the same if Adhiambo was Atieno's son? (4 marks) ii) An aircraft went out of control and crashed on Kirima's villa in Pango estate. Kirima and his members of the family perished in the accident.. The Utopian ambassador being a kind man immediately raised a fund for the benefit of the dependants of Kirima's family. It now appears that there are no dependants and the ambassador wishes to know how he should distribute the money he had raised for late Kirima's dependants. Explain to the ambassador the alternatives opened to him. (7 marks) (Total: 15 marks)