PROBLEM 14 T Ltd. was placed in voluntary liquidation on 31st December, 2009, when id Balance Sheet was as follows: Issued Share Capital : Freehold Factory 5,80,000 50,000 Equity Shares of 10 Plant and Machinery 2,89,000 each fully paid less calls Motor Vehicles 57,500 in arrear amounting to Stock 1,86,000 * 25,000 4,75,000 Debtors 74,000 6,000 5% Cumulative Profit & Loss Account 2,14,000 Preference Shares of * 100 each fully paid 6,00,000 Share Premium Account 50,000 5% Debentures Account 1,00,000 Interest on Debentures 2,500 Bank Overdraft 58,000 Creditors 1,15,000 14,00,500 14.00.500 The Preference dividend are in arrears from 2006 onwards. The Company's articles provide that on liquidation, out of the surplus assets remaining after payment of liquidation costs and outside liabilities, there shall be paid firstly all arrears of preference dividend ; secondly the amount paid up on the Preference Shares together with a premium thereon of 10 per share, and thirdly any balance then remaining shall be paid to the equity shareholders. The Bank Overdraft was guaranteed by the directors who were called upon by the Bank to discharge their liability under the guarantee. The directors paid the amount to the Bank The liquidator realised the assets as follows: 7,00,000 2,40,000 59,000 1,50,000 60,000 25,000 Creditors were paid less discount of 5 per cent. The debentures and accrued interest were Liquidation costs were ? 3,820 and the liquidator's remuneration was 2 per cent on the Prepare the liquidator's statement of account. Freehold Factory Plant and Machinery Motor Vehicles Stock Debtors Calls in Arrears Frepaid on 31st March, 2010. amounts realised