Karat co ltd went into voluntary liquidation on 1 march 210

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Reference no: EM13379376

Karat Co. Ltd. went into voluntary liquidation on 1 March 210. The following balances are extracted from its books on that date:

Liabilities


Assets


Capital

2,50,000

Buildings

75,000

25,000 Equity


Plant &

1,05,000

Shares of Rs. 10


Machinery


each


Stock in Trade

47,500

Debentures

1,00,000

Book Debts


(Secured by a


37,500


Floating Charge)


Less: Provision


Bank Overdraft

15,000

5,000

32,500

Creditors

20,000

Calls-in-Arrears

50,000



Cash in Hand

5,000



P&L A/c

70,000


3,35,00


3,35,000

Plant & Machinery and buildings are valued at Rs.75,000 and Rs.60,000, respectively. On realization, losses of Rs.7,500 are expected on stock. Book debts will realize Rs.35,000. Calls-in- arrears are expected to realize 90%. Bank O/D is secured against buildings. Preferential creditors for taxes and wages are Rs.3,000 and miscellaneous expenses outstanding Rs.1,000. Prepare a statement of affairs to be submitted to the meeting of creditors.

Reference no: EM13379376

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