Fly Ltd went into liquidation on 30^th June 2014. The company had the following
ID: 2488463 • Letter: F
Question
Fly Ltd went into liquidation on 30^th June 2014. The company had the following Equity Share Capital: The company's constitution was silent as to return of capital in the event of a winding up. All calls in arrears were received by the liquidator, except from 2,000 "A" Ordinary shares which were forfeited. Calls in advance were not paid back before the final distribution by the liquidator. Uncalled capital (where required to be called up) on final distribution proved to be recoverable. After the realisation of the assets, the payments of liabilities and liquidators costs and the receipts and forfeiture in above there remained a cash balance of $100. Show all workings for the calculation of the final distribution of a deficiency or surplus to the shareholders.Explanation / Answer
Final Distribution on Liquidation Cash Balance as per ii) 100 General Reserve 25800 Carry Forward Loss -13000 Uncalled Capital Recovered: 68000 A Ord. Sh.68000*0.5 34000 50000 B Ord. Sh.50000*0.25 12500 46500 Total amount available for distribution 59400 Paid-up value of Preference shares 40000 Calls in advance 1000 Balance available 18400 Proportion to A Ord. Sh -18400/186000*136000 13454 Proportion to B Ord. Sh- 18400/186000*50000 4946 18400 Preference Shares 40000 Calls received in advance 1000 A Ordinary Shares 13454 B Ordinary Shares 4946 59400