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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