Question
Q1: The extraordinary general assembly of a joint stock company decided to liquidate the company, and its financial position on the date of the liquidation
Q1: The extraordinary general assembly of a joint stock company decided to liquidate the company, and its financial position on the date of the liquidation were as shown in the following table:
Assets | Liabilities | ||
Fix Assets | 6,500,000 | Issued and authorized capital (50,000 shares with a par value of 100 BHD per share) | 5,000,000 |
Current Assets | 5,200,000 | Reserves | 4,000,000 |
Bank | 300,000 | Creditors | 3,000,000 |
Total Assets | 12,000,000 | Total liabilities | 12,000,000 |
It was liquidated as follows (liquidation processes):
- Fixed assets were sold for 7,100,000 BHD.
- liquidator obtained from the current assets the amount of 6,200,000 BHD.
- Liquidation expenses and liquidator fees amounted to 100,000 BHD.
Required: change the numbers mentioned in the liquidation processes and use them in the following requirements.
- Do the necessary entries?
- Prepare the following accounts: liquidation account, shareholders account, the bank?
- How much each share get from the net result of the liquidation.
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