Question Three.docx - Question Three a Explain five consequences of a winding up order under liquidation of companies(5mks b Filisika is insolvent and

Question Three.docx - Question Three a Explain five...

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Question Three a) Explain five consequences of a winding up order under liquidation of companies. (5mks) b) Filisika is insolvent and has filed a petition in bankruptcy. The company has no cash and its balance sheet currently shows creditors of sh.48million. An additional sh.8million is owed in connection with various expenses and has not been recorded in the books. The company assets as at 30 th September 1999 were as follows: Book values Expected to realize Sh.000 Sh.000 Land 80,000 75,000 Buildings 90,000 60,000 Accumulated depreciation- Buildings (38,000) - - Equipment 110,000 20,000 Accumulated depreciation – Equipment (61,000) - Investments 10,000 18,000 Stock 48,000 36,000 Debtors 31,000 9,000 Other assets 5,000 _______ 275,000 218,000 Additional information 1. Filisika has three debentures payable with different maturity dates; a) Debentures one: due in 5 years – Sh.120million secured by a mortgage lien on land and
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  • Spring '17
  • Dr.Agnes Meroka

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