MindVault360

⋮ Mindvault360 Liquidation - Introduction Sums - Liquidators Remuneration   1. Assets realized: Rs. 6,30,000 including cash balance 30,000 Liquidator's remuneration 2% on the assets realized. Calculate the Liquidator's remuneration. Solution:     Assets realized:        6,30,000     -) cash balance        30,000 ------------ Total Assets realized                       6,00,000                             ------------- Liquidator's remuneration:    6,00,000 x 2/100 ==> 12,000 2. Compute Liquidator’s Remuneration from the information given below: Secured Creditors: Rs. 60,000 (Securities realised: Rs. 80,000) Other Assets realised: Rs. 75,000 Liquidator’s remuneration: 2 ½ % on the amounts reali...

⋮ Mindvault360 Liquidation - Introduction Sums - Liquidators Remuneration What is Liquidation? Liquidation is the process of winding up a company's affairs by selling its assets, settling liabilities, and distributing any remaining funds to shareholders. It marks the end of a company's legal existence. Types of Liquidation Voluntary Liquidation – Initiated by the company's members or creditors when the business is no longer viable. Members’ Voluntary Liquidation (MVL) : When the company is solvent but chooses to close. Creditors’ Voluntary Liquidation (CVL) : When the company is insolvent and unable to pay debts. Compulsory Liquidation – Ordered by a court when a company fails to pay creditors or violates legal regulations. Key Participants in Liquidation Liquidator – A professional appointed to oversee the process, sell assets, and distribute funds. Creditors – Entities or individuals to whom the company owes money. Shareh...