Making Account .com
The liquidation is to declare that the company will be closed for some reason ,This may be the last period of the artificial man (company) ,This notice should be communicated to all those who work in the company and to all those who are in relate with the company.
A document containing details of the legal steps to be taken to dissolve a company is called a winding up document ,This is the beginning stage of the liquidation ,
After completing all the steps mentioned in the winding up document the name of the company is remove from the register. This is the dissolved of company
Members will close the company if there is continued loss or the court will close the company if it is against the law
Money to be paid by the company (Credit purchases and pending payment ) and The company borrowed (loan on buliding) They are called creditors
If the money borrowed by the company (loans related to fixed assets) and the money to be paid by the company ( Bills payable related to stock) is related to the assets it is called a secured creditor
If the expenses due in the previous years are not paid it will be called a unsecured creditors (outstanding expenses ,outstanding payment)
Creditors are classified into two types, secured creditors and unsecured creditors but When a company liquidation, half of the unsecured creditors is taken separately it is called preferences creditors
unsecured creditors $3200
salary
6 month salary or $800 paid to preferential creditors |preferancial creditors $800
tax
previous 12 months tax paid to preferancial creditors |preferancial creditors $600
unsecured creditors $1800
preferential creditors $1400
The person appointed to dissolve the company, Liquidator Appointment Winding Up Second stage An liquidator may be appointed if there is no appeal to the court to stop the dissolution process
First you need to prepare the balance sheet( 7 month or 11 month )
ready to submit the amount realised document $83 000
then next step is pledged the asset document recovery (surplus document)
than submit the asset realised $103000
next go to payment side ,You can find out more about this in the winding up chapter
liqudatore do the work will pay the money that money mostly he is like % of payment ,that is remuneration
mostly liqudators expactiong asset realised sume of %
asset realised $19 000 ,remuneration 10% asset realised
remuneration $1900
remuneration paid to preferential creditors before
asset realised $19 000 ,legal charges $1000,liquidation expenses $300 , preferential creditors remuneration 10% ,debenture $8000 ,preferential creditors $2000
remuneration $200
remunaration paid to unsecured creditors (surplus)
asset realised $19 000 ,legal charges $1000,liquidation expenses $300 ,debenture $8000 ,preferential creditors $2000 ,unsecured creditors $5000 remuneration 10% unsecured creditors
remuneration $500 (5000* 10/100 = 500)
remuneration paid to unsecured creditors (deficit)
The Company promises to pay a certain percentage to the Liquidator, and if the company is a deficit, it will have to repay the percentage of the amount paid to the Liquidator.
example
The unsecured creditors has $ 5000 to pay (unsecured creditors $7000) 10% remuneration paid to Liquidator (12 members equal ratio )
calculate unsecured creditors payment and liquidator payment
calculate remuneration
next calculet : The company is in deficit so unsecured creditors are paid 10%
member sacrifice ratio to unsecured creditors 12 *10 /100 = 1.2 & each member sacrifice 1 * 10/ 100 = .1
Total unsecured creditors paid 45.5
The unsecured creditors has $ 7000 to pay (unsecured creditors $10000) 10% remuneration paid to unsecured creditors (5 mebers (2 authority (ratio 3),3 worker (ration 2) )
Calculate unsecured creditors Creditors Payment And Liquidator Payment
Next Calculet : The Company Is In Deficit So Unsecured Creditors Are Paid 10%
total ratio : 12
Member Sacrifice Ratio To Unsecured Creditors 12 *10 /100 = 1.2 + total ratio
asset realised $19 000 ,legal charges $1000,liquidation expenses $300 ,debenture $8000 ,preferential creditors $2000 ,unsecured creditors $10000 remuneration 10% unsecured creditors
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