The Sundry Vally Mining Co. Ltd. went into voluntary liquidation on 1 April 2011, as its mines reached such a state of depletion that it became too costly to excavate further minerals. The liquidator, whose remuneration is 3% on realization of assets and 2% on distribution among the shareholders, realized all the assets. The following was the position of the company on 31 March 2011:
|
Rs. |
|
Cash on Realization of Assets
|
15,00,000
|
|
Expenses of Liquidation
|
27,000
|
|
Unsecured Creditors (Including Salaries and Wages for One Month Prior to Liquidation Rs.18,000)
|
2,04,000
|
|
4,500 14% Preference Shares of
|
4,50,000
|
|
Rs.100 Each Dividend Paid Up To 31 March 2010
|
|
|
30,000 Equity Shares of Rs.10 Each,
|
2,70,000
|
|
Rs.9 per Share Called and Paid-Up
|
|
|
General Reserve as on 31 March 2011
|
3,60,000
|
|
Profit & Loss A/c as on 31 March 2011
|
60,000
|
Under the Articles of Association of the Company, the preference shareholders have the right to receive one-third of the surplus remaining after repaying the equity share capital.