Accounting for Liquidation of Companies – CA Inter Advanced Accounting Question Bank

Accounting for Liquidation of Companies – CA Inter Advanced Accounts Question Bank is designed strictly as per the latest syllabus and exam pattern.

Accounting for Liquidation of Companies – CA Inter Advanced Accounting Question Bank

Question 1.
The summarized Balæice Sheet of Full Stop Limited as on 31st March 2011, being the date of voluntary winding up is as under:

Preference Dividend is in arrears for three years. By 31-03-2011 the assets realized were as follows:
Land and Building ₹ 6,20,000
Stock ¡n Trade ₹ 3,10,000
Plant and Machinery ₹ 7,10,000
Book Debts ₹ 6,60,000
Expenses of liquidation are ₹ 86,000. The remuneration of the liquidator is 2% of the realization of assets. Income Tax payable on liquidation is ₹ 67,000. Assuming that the final payments were made on 31-03-2011, prepare the Liquidators Statement of Account. (May 2011, 8 marks)
Answer:

Question 2.
Answer the following:
What are the contents of the ‘Liquidators’ statement of account”? (Nov 2015, 4 marks)
Answer:
While preparing the liquidator’s statement of account, receipts are shown In the following order:
1. Amount realized from assets are included in the prescribed order.
2. In case of assets specifically pledged in favour of creditors only the surplus from it, if any is entered as Surplus from Securities.
3. In case of partly paid shares, the equity shareholders should be called up to pay necessary amount if creditors’ claims of preference shareholders cannot be satisfied with the available amount. Preference shareholders would be called upon to contribute for paying of creditors.
4. Amounts received from calls to contributors made at the time of winding up are shown on the Receipts side.
5. Receipts per Trading Account are also included on the Receipts side.
6. Payments made to redeem securities and cost Of execution and payments per Trading Account are deducted from total receipts.

Payments are made and shown in the following order.

1. Legal charges
2. Liquidator’s Expenses
3. Debenture holders (including interest up to the date of winding up if the company is insolvent and to the date of payment if it is solvent);

4. Creditors:

• Preferential (in actual practice, preferential creditors are paid before debenture holders having a floating charge):
• Unsecured creditors;

5. Preference shareholders (Arrears of dividends on cumulative preference shares should be paid up to the date of commencement of winding up)

6. Equity shareholders.

Question 3.
Answer the following:
A, B, C, and D hold Equity Share Capital in the proportion of 40:30:20:10, and P, Q, R, and S hold Preference Share Capital in the proportion of 30:40:20:10 in Alpha Ltd. If the paid-up Equity Share Capital of Alpha Ltd. is ₹ 75 lacs and the Preference Share Capital is ₹ 25 lacs, find their voting rights in the case of resolution of winding up of the company. (Nov 2020,5 marks)
Or
Answer the following:
Equity Capital is held by Mu, Adi, and Arun in the proportion of 30 : 30: 40 and Preference Share Capital is held by Sonu, Shri and Sanaya in the proportion of 40:10: 50. If the paid-up Equity Share Capital of the company is ₹ 50 lakhs and Preference Share Capital is ₹ 30 lakhs, find the proportion and percentage of their voting right in case of resolution of winding up of the company. (Jan 2021,5 marks)

Question 4.
Answer the following:
Write the LISTS which should accompany the Statement of Affairs, in case of a winding up by Tribunal. (Nov 2015, 4 marks)
Answer:
The broad lines on which the Statement of Affairs is prepared are as following:
1. Includes assets on which there is no fixed charge at the value they are expected to realize. Students should note to include calls in arrear but not uncalled capital.

2. Includes assets on which there is a fixed charge. The amount expected to be realised would be compared with the amount due to the Creditor concerned. Any surplus is to be extended to the other column. A deficit is to be added to unsecured creditors.

3. The total of assets in point (1) and any surplus from assets mentioned in point (2) is available (or all the creditors.

4. From the total assets available the following should be deducted one by one:

• Preferential Creditors.
• Debentures having a floating charge, and
• Unsecured Creditors.

If a minus balance emerges, there would be deficiency as regards Creditors, otherwise, there would be a surplus.

5. The amount of total paid-up capital should be added and the figure emerging will be deficiency as regards members.

Question 5.
From the following particulars, prepare a Statement of Affairs and the Deficiency Account for submission to official liquidator of Sun City Development Ltd., which went into liquidation on 31st March, 2016.


On 31st March 2011 the Balance Sheet of the Company showed a General Reserve of ₹ 8,00,000 accompanied by a debit balance of ₹ 5,00,000 in the Profit and Loss Account. In 2012 the Company made a profit of ₹ 8,00,000 and declared a dividend of 10% on Equity Shares. The Company suffered a total loss of ₹ 21,80,000 besides loss of stock due to fire to the tune of ₹ 6,00,000 during financial years ending March 2013, 2014 and 2015. For the financial year ended 31 March, 2016, accounts were not made. The cost of winding up is expected to be ₹ 3,00,000. (May 2016, 16 marks)
Answer:

Note
(i) The Secretary of a Company, being an officer, is to be included within the definition of employee for the purpose of computing preferential creditors. The preferential creditor br secretaries salary has been restricted 4 months’ salary but maximum pay shall not exceed ₹ 20,000 per claimant as per the requirement of the law.

(ii) The above is subject to cost of winding up estimated as ₹ 3,00,000 and to any surplus t deficiency on realisation of assets.

(iii) There are ₹ 6,00,000 shares unpaid @ 2 per share liable to be called up.

Question 6.
“X” is appointed Liquidator of ABC Ltd. in Voluntary Liquidation, on 1st July. Following balances are extracted from the books on that date:

Prepare a Statement of Affairs to be submitted to the meeting of Creditors. Following assets are valued as under by that date:
Machinery ₹ 90,000
Investments ₹ 6,000
Leasehold Properties ₹ 1,09,000
Stock in-Trade ₹ 3,000
Bad Debts are ₹ 3,000 and the Doubtful Debts are ₹ 6,000 Which are estimated to realise ₹ 3,000. Bank Overdraft is secured by a deposit of title deeds of Leasehold Properties, Preferential Creditors are ₹ 1,500. Telephone Rent outstanding ₹ 120.
Answer:


Note: Surplus Figures are subject to the following – (a) There is no Unpaid Capilal liable to be called up. (b) Estimates are subject to Costs of Winding Up and to any Surplus or Delidency on trading pending realization of the Assets.

Question 7.
Beekey Limited is being wound up by the tribunal. All the assets of the company have been charged to the company’s bankers to whom the company owes ₹ 2.50 crores. The company owes following amounts to others:
Dues to workers – ₹ 62,50,000
Taxes payable to Government – ₹ 15,00,000
Unsecured creditors – ₹ 30,00,000
You are required to compute with reference to the provision of the Companies Act, 2013. the amount each kind of creditors is likely to get if the amount realized by the official liquidator from the secured assets and available for distribution among creditors is only ₹ 2,00,00000. (Nov 2020, 5 marks)

Question 8.
From the data relating to a company which went into voluntary liquidation, you are required to prepare the liquidator’s Final Statement of Account.
(i) Cash with liquidators (after all assets are realised and secured creditors and debenture holders are paid) is ₹ 7,50,000.
(ii) Preferential creditors to be paid ₹ 35,000.
(iii) Other unsecured creditors ₹ 2,30,000.
(iv) 5,000, 10% Dreterence shares of ₹ 100 each fully paid.
(v) 3,000 equity shares of 100 each, ₹ 75 per shares paid up.
(vi) 7,000 equity shares of 100 each ₹ 60 per share paid up.
(vii) Liquidator’s remuneration is 2% on payments to preferential and other unsecured creditors. (May 2009, 8 marks)
Answer:


Amount receivable from 7,000 equity shareholders = 7,000 x 6.53 (i.e. 66.53 – 60) = ₹ 45,710
Amount payable to 3,000 equity shareholders = 3,000 x 8.47 (i.e. 75 – 66.53) = ₹ 25,410
35,000 + 2,30,000 = ₹2,65,000

Question 9.
From the following Trial Balance of PO Ltd. on 31.12.2009, prepar liquidators’ Final statement of account:

Following points should be kept in mind:
(i) On 21st January. 2010 the liquidator of PO Ltd. sold plant for ₹ 2,95,000 and stock in trade at 10% less than the book value. He realised 80% of Sundry debtors and incurred cost of collection of ₹ 1,850 (remaining debtors are to be treated as bad).

(ii) The loan mortgage was discharged on 31st January, 2010 along with interest for 6 months. Creditors were discharged subject to 5% discount. Outstanding expenses paid at 20% less.

(iii) Preference share dividend is due for one year and paid with final payment.

(iv) Liquidation expenses incurred are ₹ 1,800 and liquidators remuneration is settled at 4% on disbursement to members, subject to minimum of ₹ 10,000. (May 2010, 8 marks)
Answer:

Surplus available = ₹ 8,07,000 – ₹ 1,800 – ₹ 2,36,900 – ₹ 2,09,950 – ₹ 1,850 – ₹ 20,000 –
₹ 11,250 = ₹ 3,25,250.

Question 10.
The summarised Balance Sheet of Vasant Ltd. as on 31st March. 2013, being the date of voluntary winding up is as under:

A mortgage loan was secured against Land and Buildings. Debentures were secured by a floating charge on all assets. The company was unable to meet the payments and therefore the debentureholders appointed a Receiver for the debentureholders. He brought the Land and Buildings to auction and realised ₹ 1,60,000. He also took charge of Sundry Assets of value of ₹ 2,36,000 and realised ₹ 2,00,000. The Bank overdraft was secured by personal guarantee of the directors of the company and on the Bank raising a demand, the Directors paid off the due from their personal resources. Costs incurred by the Receiver were ₹ 1,950 and by the Liquidator ₹ 3,000. The receiver was not entitled to any remuneration but the Liquidator was to receive 2% fee on the value of assets realised by him. Preference Shareholders have not been paid dividends for period after 31st March 2011 and interest for the last half year was due to If the Debenture holders. Rest of the assets were realised at ₹ 1,50,000. If Prepare the accounts to be submitted by the Receiver and Liquidator. (Nov 2013, 16 marks)
Answer:

Working Note:
Calls from partly paid shares:
Deficit before call from equity shares (2,53,300 – 2,54,000) = 700
Notional call on 5,000 shares @ ₹ 2 each = 10,000
Net Balance after notional call = 9,300
No. of shares deemed fully paid = 15,000
Refund on fully paid shares = \(\frac{9,300}{15,000} \) = 0.62 paise

Question 11.
Answer the following:
A liquidator Is entitled for receive remuneration at 2% on the assets realized, 3% on the amount distributed to Preferential Creditors, and 3% on the payment made to Unseçured Creditors. The assets were realized for ₹45,00,000 against which payment was made as follows:
Liquidation expenses ₹50,000
Secured Creditors ₹ 15,00,000
Preferential Creditors ₹ 1,25,000
The amount due to Unsecured Creditors was ₹ 15,00,000. You are asked to calculate the total remuneration payable to liquidator. Calculation shall be made to the nearest multiple of a rupee. (May 2015, 4 marks)
Answer:

Working Note:
Amount distributed to unsecured creditors = 45,00,000 – 50,000 – 15,00,000- 1.25,000 – 90,000 – 3,750 = 27,31,250
A sufficient amount is available for unsecured creditors there fore Liquidator’s remuneration on payment to unsecured creditors = 3% × ₹ 15,00,000 = ₹ 45,000.

Question 12.
The summarized Balance Sheet of M/s. X Limited as at 31st March, 2016 are as follows:

Mortgage loan was secured against Land and Building. Debentures were secured by a floating charge on all assets. The company was unable to meet the payments and therefore the Debenture Holders appointed a Receiver for the Debenture Holders. He bought the Land and Building to auction and realized ₹ 8,00,000. He also took charge of Sundry Assets of
value of ₹ 11,80,000 and realized ₹ 10,00,000. Bank overdraft was secured by personal guarantee of the Directors of the company and on the Bank raising a demand, the Directors paid off the due from their personal resources.

Cost incurred by the receiver were ₹ 9,750 and by the Liquidator ₹ 15,000. The Receiver was not entitled to any remuneration but the Liquidator was to receive 2% fee on The value of assets realized by him.

Preference Shareholders have not been paid Dividends for period after 31st March. 2014 and interest for the last half year was due to Debenture Holders. Rest of the ASSOIS were realized at ₹ 7,50,000. Prepare the Accounts to be submitted by the Receiver and Liquidator. (Nov 2016,16 marks)
Answer:

Question 13.
Answer the following:
In a liquidation which commenced on 11th November 2017, certain creditors could not receive payments out of the realization of assets and out of the contributions from A” list contributors. The following are the details of certain transfers, which took place in 2016 and 2017:

All the shares were ₹ 10 each, ₹ 5 paid up. Ignoring expenses of and remuneration to liquidator show the amount to be realised from various persons listed above. (May 2018, 5 marks)
Answer:
C will not be liable since he transferred his share prior to one year preceding the date of winding up. The amount of ₹ 9,000 outstanding on 1st January 2017 will have to be contributed by P, D, B, and S in the ratio of number of shares held by them, i.e. in the ratio of 15:20:7:3: thus P will have to contribute ₹ 3,000 : D of 4,000, B ₹ 1,400 and ₹ 600. Similarly, the further debts incurred between 1st January 2017 and 1st April 2017, viz. ₹ 3,000 for which P is not liable will be contributed by D, B, and S in the ratio of 20 : 7: 3, D will have to contribute ₹ 2,000.

B will have to contribute ₹ 700. S will have to contribute ₹ 300. The further Increase from ₹ 12,000 to ₹ 13,500, viz ₹ 1,500 occurring between 1st April 2017 t0 1st August 2017 will be shared by B and S who will be liable for ₹ 1,050 and ₹ 450 respectively. The increase between 1st August 2017 and 15th September 2017, is solely the responsibility of S. Against S’s liability of ₹ 2,350, he can be called upon to pay ₹ 1,500, the loss of ₹ 850 will have to be suffered by these creditors. The following statement makes the position clear:

Question 14.
Virat Ltd. furnishes the following summarized Balance Sheet as at 31st March, 2018:

The mortgage loan was secured against the Land & Buildings. Debentures were secured by a floating charge on all the assets of the company. The debenture holders appointed a Receiver. The company being voluntarily wound up. a liquidator was also appointed. The Receiver was entrusted with the task of realising the Land & Buildings which fetched ₹ 7,50,000.

Receiver also took charge of Sundry current assets of value ₹ 30,00,000 and sold them for ₹ 28,75,000. The Bank overdraft was secured by a personal guarantee of the directors who discharged their obligations in full from personal resources. The costs of the Receiver amounted to ₹ 10,000 and his remuneration ₹ 15,000. The expenses of liquidator was ₹ 17,500 and his remuneration was decided at 2% on the value of the assets realised by him. The remaining assets were realised by liquidator for ₹ 12,50,000.

Preference dividend was in arrears for 2 years. Articles of Association of the company provide for payment of preference dividend arrears in priority to return of equity capital. Prepare the accounts to be submitted by the Receiver and the Liquidator. (Nov 2018, 10 marks)
Answer:

Working Note:
Amount to be paid or received from Equity shareholders ₹
Total Equity share capital paid up 14,00,000
Less: Surplus before call from Equity Shares
(29,00,000 – 22.87,500) (6.12.500)
Loss to be borne by 1,50,000 shares 7,87,500
Loss per share = (7,87,500/ 1,50,000 shares) 5.25
Hence, Refund to Equity shareholders of 1,00,000 shares of ₹ 10 fully paid up 4.75
Refund to Equity shareholders of 50,000 shares of ₹ 8 paid up 2.75

Question 15.
BT Ltd. went into Voluntary Liquidation on 31 March, 2018, when their detailed Balance Sheet read as follows:

Preference dividends were in arrear for 1 year. Creditors include preferential creditors of 75,000. Balance creditors are discharged subject to 5%
discount.
Assets are realised as under: In ₹
Land & Building 24,50,000
Plant & Machinery 9,00,000
Furniture 2,85,000
Patents 90,000
Stock 2,80,000
Trade Receivables 3,15,000
Expenses of liquidation amounted to 45,000.
The liquidator is entitled to a remuneration of 3% on all assets realised (except cash at bank).
All payments were made on 30th June, 2018.
You are required to prepare the Uquidator’s Final Staernent of Accaunt as 30th June. 2018. Working Notes should form part of the answer. (May 2019, 10 marks)
Answer:

Working Notes:
1. Liquidator’s Remuneration = ₹ 43,20,000 x 3/100 = ₹ 1,29,600
2. As the company is solvent, interest on the debentures wifl have to be
paid for the period 1/4/18 to 30/6/18
= ₹ 10,00,000 × \(\frac{12}{100} \times \frac{3}{12} \) = ₹ 30,000.

Loss per shares ₹ 27,005
hence, Amount of refund to ₹ 75 per ₹ 47,995
Amount of refund to ₹ 60 per share ₹ 32,995.

Question 16.
A liquidator is entitled to receive remuneration at 5% of the assets realised and 8% of the amount distributed among the unsecured creditors. The assets realised ₹ 13,75,000. Payment was made from realised amount as follows:
Liquidation expenses ₹ 13,000
Preferential creditors (treated as unsecured creditors) ₹ 88,500
Secured creditors ₹ 1,00,000
You are required to calculate remuneration payable to the liquidator. (Nov 2019, 5 marks)
Answer:
Calculation of Total Remuneration Payable to Liquidator
5% of the Asset reased ( 13,75,000 × 5%) ₹ 68,750
8% of payment made to unsecured creditors (W.N.) ₹ 7,080
Total Remuneration Payable to Liquidator ₹ 75,830

Working Note:
Liquidator’s remuneration on payment to unsecured Creditors = Cash available for unsecured creditors after all payments including liquidation expenses, payment to secured creditors, and liquidator’s remuneration.
=₹ 13,75,000- ₹ 13,000 – ₹1,00,000 – ₹ 68,750 = ₹ 11,93,250
Sufficient amount is available for preference creditors (treated as unsecured creditors) therefore Liquidator’s remuneration on payment to unsecured creditors = 8% x ₹ 88,500 = ₹ 7,080.
Note: Since the amount of unsecured creditors (other than preferential creditors) is not given in the question, the above solution is based on the assumption that there are no unsecured creditors (other than preferential creditors who are treated as unsecured creditors).

Question 17.
The Balance sheet of XYZ Ltd. as on 31st December was as follows:

The Company went into liquidation on that date. Prepare Liquidator’s Statement of Account after taking into account the following:
liquidation Expenses and Liquidator’s Remuneration amounted to ₹ 3,000 and ₹ 10,000 respectively.
Bank Loan was secured by pledge of Stock.
Debentures and Interest thereon are secured by a Floating charge on all assets.
PPE were realised at Book Value, and Current Assets at 80% of Book Values.
Answer:

Question 18.
The following is the Balance Sheet of “XYZ” Limited as at 31st March:

On that date, the Company went into Voluntary Liquidation. The dividends on Preference Shares were in arrears for the last 2 years. Sundry Creditors include a Loan of ₹ 90,000 on Mortgage of Land and Buildings. The Assets realised were: (a) Land and Buildings ₹3,40,000,
(b) Plant and Machinery ₹ 3,60,000,
(c) Stock ₹ 1,20,000, and
(d) Sundry Debtors ₹ 1,60,000.
Interest accrued on Loan on Mortgage of Buildings up to the date of payment amounted to ₹ 10,000. The Expenses of Liquidation amounted to ₹ 4,600. The Liquidator ¡s entitled to a remuneration of 3% on all the assets realised (except Cash at Bank) and 2% on the amounts distributed among Equity Shareholders. Preferential Creditors included in Sundry Creditors
amount ₹ 30,000. All payments were made on 30th June (3 months from Balance Sheet date.) Prepare the Liquidator’s Final Statement Account.
Answer:

Interest on Debentures: As the Company is solvent, Interest on Debentures should be paid upto the date of final settlement i.e. for the period of 3 months i.e. 2,00,000 x 10% x 3/12 = ₹ 5,000.
Balance Unsecured Creditors
Creditors as per B/s – Mortgage Loan – Preferential Creditors
= (4,90,000 – 90,000 – 30,000) = ₹ 3,70,000

Question 19.
Answer the following:
What is B list contributors? (Nov 2008, 4 marks)
Answer:
B list Contributories: The shareholders who transferred partly paid shares (otherwise than by operation of law or by death) within one year, before the date of winding up may be called upon to pay an amount (not exceeding the amount not called up when the shares were transferred) to pay off such creditors as existed on the date of transfer of shares.

Their liability will become definite only:

• when the existing assets available with the liquidator are not sufficient to cover the liabilities.
• when the existing shareholders fail to pay the amount due on the shares to the liquidator.

Question 20.
M/s. ABC Limited has gone into liquidation on 25th June, 2011. Certain creditors could not receive payments out of the realization of assets and out of the contributions from A list contributories, The following are the details of certain transfers which took place in the year ended 31st March 2011:

All the shares are of ₹ 10 each, ₹ 8 per share paid up. Show the amount to be realized from the persons listed above. Ignore remuneration to a liquidator and other expenses. (Nov 2011, 8 marks)
Answer:

Note:

1. ‘P transferred shares before one year preceding the date of winding up, therefore, he cannot be held liable for any liability on liquidation.
2. Liability of ‘T has been restricted to the maximum allowable limit of ₹ 2,000. Therefore, amount payable by on 09.03.2011 is 8 only.
3. Q’ will not be responsible for further debts incurred after 10th May 2010 (from the date when he ceases to be a member). Similarly, ‘R’ and ‘S’ will not be liable for the debts incurred after the date of their transfer of shares.

Question 21.
M/s. Cloud Limited has gone into liquidation on 25th June, 2016. Certain creditors could not receive payment out of realization of assets and contributions from ‘A list’ coritributones. The following are the details of certain transfers which took place during the year ended 31st March 2016:

All the shares are of ₹ 10 each and ₹ 8 per share paid up. Show the amount to be realized from the persons listed above. Ignore remuneration of liqudator and other expenses. (May 2017, 4 marks)
Answer:

Working Note:

Date	Cumulative Liability	Increase In Liability	Ratio of No. of shares held by the Members
22-7-15	12,000	–	30: 24:16:10
15-9-15	13,500	1,500	24:16:10
14-12-15	14,000	500	16:10
9-3-16	14,200	200	‘O’ Only

Liability of O has been restricted to the maximum allowable Limit of ₹ 2,000. Therefore, amount payable by O is restricted ₹ 8 only, on 9-3-2016.

Notes:
1. K will not be liable to pay to the outstanding creditors since he transferred his shares prior to one year preceding the date of winding up.

2. L will not be responsible for further debts incurred after 22-7-2015. Similarly, M and N will not be responsible for the debts incurred after the date of their transfer of shares.

Question 22.
In a winding up of a company, creditors remain unpaid. The following persons had transferred their holdings before winding up.

Name	Date of Transfer	No.of shares transferred	Amt. due to creditors on the transfer (₹)
D	1st January, 2019	1000	8500
E	15th February, 2019	400	13,500
H	15th March, 2019	700	19,000
J	31st March, 2019	900	22,000
K	5th April, 2019	1000	31,000

The shares were of ₹ 1oo each, ₹ 80 being called up and paid up on the date of transfers.

1. A member G, who holds 200 shares died on 28th Feb. 2019 when the amount clue to creditors was ₹ 16000. His shares were transmitted to his Son X.
2. R was the transferee of shares held by J.R. paid ₹ 20 per share as calls in advance immediately on becoming a member.
3. The liquidation of the Company commenced on 1st February, 2020. When the liquidator made a call on the present and past contributors to pay the amount. You are required to quantify the maximum liability of the transferors of shares mentioned in the above table. ( Nov 2020, 5 marks)

Question 23.
In the winding up of a company, certain Creditors could not receive payments out of the realization of Assets and Out of contribution from A” list contributors. Liquidation started on 1 April 2020. The following persons have transferred their holdings before winding up:

Name	Date of Transfer	No. of shares transferred	Amount due to creditors on the date of transfer (₹)
O	4th April, 2019	1,000	42,000
P	2nd Feb, 2019	300	25,000
Q	8th Sep, 2019	200	57,000
R	11th Nov, 2019	1,400	85,000
S	2nd Feb, 2020	800	66,000
T	1st March, 2020	1,400	95,000

The shares were of ₹ 1oo each. ₹ 70 being called up and paid up on the date of transfers.
X’ was the transferee of shares held by ‘S’. ‘X’ paid ₹ 30 per share as calls in advance immediately on becoming a member. Ignoring Expenses of Liquidation. Remuneration of Liquidator, etc. work out the amount to be realised from the above contributors. (Jan 2021, 10 marks)

Question 24.
In a winding up which commenced on 12th April ol a certain calendar yeas, certain creditors could not rnceive payments out of the realization of assets and Out of contribution from ‘A’ List of Contributories. Following are the detas of certain Share transfers that took place prior to liquidation. and the amount of creditors remaining unpaid.

Shareholders	No. of Shares Transferred	Date when ceased to be Member (last Cal. Year)	Creditors remaining unpaid and outstanding on the date of ceasing to be a Member (₹)
A	2,000	4th February	8,000
B	1,800	12th June	12,000
C	1,200	20th September	17,400
D	1,000	15th October	18,600
E	500	3rd December	22,000

All the Shares were of ₹ 10 each on which ₹ 5 per Share had been called and paid up. ignoring expenses of Liquidation, Remuneration to Liquidator, etc. work out the amount to be realised from the above contributories.
Answer:
The winding-up commenced on 12 April. Hence, only those persons who had transferred their shares within a period of 12 months preceding the date of winding up is liable for contribution under List B. In this case, Awn is not a B List Contributory, since his Shares have been transferred much earlier than the 12-month period. The other Transferors are liable, only up to the unpaid value on the shares.

Note:
Maximum Due from D and E = ₹ 5,000 and ₹ 2,500 respectively, D will pay only ₹ 333 out of ₹ 800 marked.
1. Above, E will pay only ₹ 167 out of ₹ 400 marked.
2. Above, and Nil out of ₹ 3,400 marked.
3. Above, hence, Incremental creditors totalling ₹ 4,100 (₹ 3,400 on 3rd December and ₹ 700 on 15th October) will not be receiving any payment.

Question 25.
Liquidation of YZ Ltd. commenced on 2nd April, 2018. Certain creditors could not receive payments out of the realisation of assets and out of the contributions from A list contributories. The following are the details of certain transfers which took place in 2017 and 2018:

All the shares were of ₹ 10 each, ₹ 8 per share paid up. You are required to compute the amount to be realized from the various persons listed above ignoring expenses and remuneration to liquidator etc.
Answer:

Usability of Shas been restricted to the maximum allowable limit of ₹ 600, therefore amount payable by S is restricted to ₹ 21 only, on 1.2.2018.
Notes:

1. A will not be liable to pay to the outstanding creditors since he transferred his shares prior to one year preceding the date of winding up
2. P will not be responsible for further debts Incurred after 1 May 2017 (from the date when he ceases to be member). Similarly, Q and R will not be responsible for the debts incurred after the date of their transfer of shares.