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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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