Sums - Liquidators Remuneration

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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 realised (including securities with creditors


Solution:

Liquidator's Remuneration:

On Assets realized => 75,000 x 2.5%   ====>    1,875

On Securities realized ==> 80,000 x 2.5% ===>2,000

Liquidator's remuneration ==>                     3,875/-


3. The liquidator of a company is entitled to a remuneration of 2% on assets realised and 3% on the amount distributed to unsecured creditors.

Assets realised: Rs. 1,00,000 (including cash balance of Rs. 5,000)

Amount available for distribution to unsecured creditors (before paying liquidator’s remuneration): Rs. 43,100

Calculate liquidator’s remuneration.

Solution:

Liquidator's Remuneration:

Assets Realized 1,00,000

- cash in hand        5,000

---------

Total Assets realized 95,000

                       --------

On Assets realised: 95,000 x 2/100 ==========>     1,900     

On amt available to unsecured Creditors


                       43,100 x 3/103          =========>   1,255

                                                 ----------------

                      Liquidator's remuneration    3,155

                                                 ---------------


4. The liquidator of a company is entitled to a remuneration of 3% on the amounts realised (excluding cash in hand) and 2% on the amount distributed to the unsecured creditors.

Unsecured creditors (including preferential creditors of Rs. 5,000): Rs. 40,000

Debenture holders paid: Rs. 51,875 (with interest)

Preferential creditors paid in full

Expenses of liquidation: Rs. 510

Cash on hand: Rs. 1,000

Assets realised: Rs. 79,000

Calculate the liquidator’s total remuneration.

Solution:

Liquidator's Remuneration:

Assets realized:                 79,000

-  cash in hand                     1,000

                          ------------

Total assets realized             78,000

On assets realized: 78,000 x 3    ====>                            2,340


Amount available for unsecured Creditors:

Assets realized ==>       78,000

Subtract:

  Liquidation charges   ===>             510

    Liquidator's Remuneration   ===>        2340 

      Preferential Creditors    ===>            5000

          Debentures   ===>                51,875   

                        ------------

Amount available for unsecured Crs.       18,275

                        ------------


On Amount available for unsecured Crs.   18,275 x 3/103  ====>  532

                                    -----------------------


Liquidator's remuneration                                               2875

                                    ---------------------------


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