PROBLEM 15 The Breakfast Foods Ltd., went into voluntary liquidation on 31st December 2009. The balances in its books on that date were : Share Capital : Authorised and Subscribed : 5,000 6% Cumulative Preference Shares of 7 100 each fully paid 2.500 Equity Shares of * 100 each, 75 paid 7.500 Equity Shares of 100 each, 60 paid 5% Mortgage Debentures Interest Outstanding Creditors Land and Buildings Machinery and Plant Patents Stock 5,00,000 Sundry Debtors Cash at Bank 1,87,500 Profit and Loss Account 2,50,000 6,25,000 1,00,000 1,37,500 2,75,000 75,000 3,00,000 4,50,000 2,50,000 12.500 3.62,500 17,62,500 17,62,500 The liquidator is entitled to commission of 3% on all assets realised except cash and 2% on amounts distributed among unsecured creditors other than preferential creditors. Creditors include Preferential Creditors 37,500 and a loan for 7 1.25,000 secured by a mortgage on land and buildings. The preference dividends were in arrears for two years. The assets realised as follows: Land and Buildings Machinery and Plant Patents Stock Sundry Debtors 3,00,000 5,00,000 75,000 1,50,000 2,00,000 The expenses of liquidation amounted to 7 27,250. Prepare the Liquidator's Final Statement of Account