Illustration 4 The following particulars were extracted from the book of Loamshire Farming Company Limited on...

 

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Illustration 4 The following particulars were extracted from the book of Loamshire Farming Company Limited on 1 January, 2012, on which day a winding up order was made: N 10,000 20,000 Ordinary share Capital 20,000 shares of N1 each, 50k paid 6% Preference Share Capital 20,000 shares of N1 each fully paid 5% first Mortgage Debenture Secured by a.floating charge on coy's asset except uncalled capital 15,000 Fully Secured Creditors Value of security N3,500 Partly Secured Creditors Value of Secuirty N1,000 Preferential Creditors for rates, taxes, wages etc 311 Bills Payable Union Bank Ple Overdraft Unsecured Creditors Bill Receivable In hand Discounted (one bill for N1,000 known to be bad) Book Debts Good Doubtful (estimated to produce 50k in N1) Bad N600 Land and Building (estimated to produce N10,000) Inventories (estimated to produce N4,000) Machinery, Tools etc (estimated to produce N200) Cash in Hand You are required to prepare a Statement of Affairs 10,000 1,000 7,000 1,500 4,000 1,000 700 3,000 (Adanted from ACA) 2,000 600 15,000 5,000 500 10 Illustration 4 The following particulars were extracted from the book of Loamshire Farming Company Limited on 1 January, 2012, on which day a winding up order was made: N 10,000 20,000 Ordinary share Capital 20,000 shares of N1 each, 50k paid 6% Preference Share Capital 20,000 shares of N1 each fully paid 5% first Mortgage Debenture Secured by a.floating charge on coy's asset except uncalled capital 15,000 Fully Secured Creditors Value of security N3,500 Partly Secured Creditors Value of Secuirty N1,000 Preferential Creditors for rates, taxes, wages etc 311 Bills Payable Union Bank Ple Overdraft Unsecured Creditors Bill Receivable In hand Discounted (one bill for N1,000 known to be bad) Book Debts Good Doubtful (estimated to produce 50k in N1) Bad N600 Land and Building (estimated to produce N10,000) Inventories (estimated to produce N4,000) Machinery, Tools etc (estimated to produce N200) Cash in Hand You are required to prepare a Statement of Affairs 10,000 1,000 7,000 1,500 4,000 1,000 700 3,000 (Adanted from ACA) 2,000 600 15,000 5,000 500 10

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Since winding up order has been passed the entity is not a going concern anymore hence the concept o... View the full answer