Homework answers / question archive / Corporate accounting – Case study Q1: The extraordinary general assembly of a joint stock company decided to liquidate the company, and its financial position on the date of the liquidation were as shown in the following table: Assets Liabilities Fix Assets 6,500,000 Issued and authorized capital (50,000 shares with a par value of 100 BHD per share) 5,000,000 Current Assets 5,200,000 Reserves 4,000,000 Bank 300,000 Creditors 3,000,000 Total Assets 12,000,000 Total liabilities 12,000,000   It was liquidated as follows: Fixed assets were sold for 7,100,000 BHD

Corporate accounting – Case study Q1: The extraordinary general assembly of a joint stock company decided to liquidate the company, and its financial position on the date of the liquidation were as shown in the following table: Assets Liabilities Fix Assets 6,500,000 Issued and authorized capital (50,000 shares with a par value of 100 BHD per share) 5,000,000 Current Assets 5,200,000 Reserves 4,000,000 Bank 300,000 Creditors 3,000,000 Total Assets 12,000,000 Total liabilities 12,000,000   It was liquidated as follows: Fixed assets were sold for 7,100,000 BHD

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Corporate accounting – Case study

Q1: The extraordinary general assembly of a joint stock company decided to liquidate the company, and its financial position on the date of the liquidation were as shown in the following table:

Assets		Liabilities
Fix Assets	6,500,000	Issued and authorized capital (50,000 shares with a par value of 100 BHD per share)	5,000,000
Current Assets	5,200,000	Reserves	4,000,000
Bank	300,000	Creditors	3,000,000
Total Assets	12,000,000	Total liabilities	12,000,000

 

It was liquidated as follows:

• Fixed assets were sold for 7,100,000 BHD.
• liquidator obtained from the current assets the amount of 6,200,000 BHD.
• Liquidation expenses and liquidator fees amounted to 100,000 BHD.

 

Required: change the numbers mentioned in the liquidation processes and use them in the following requirements.

• Do the necessary entries?
• Prepare the following accounts: liquidation account, shareholders account, the bank?
• How much each share get from the net result of the liquidation.

 

 

 

Q2: Suppose that the results of the income statement in 2020.12.31 for one of the joint-stock companies showed a net profit of 900,000 dinars after deducted the tax, and the company's general assembly approved the distribution of these profits in accordance with the applicable laws and the company's statute and based on the proposal of the company's board of directors. If you know that the Income Tax Law provides for a deduction of 20% of the net profit before tax. Further, the Companies Law and the Articles of Association provide for a deduction of 10% and 20% as a Mandatory reserve and an Voluntary reserve, respectively. As well as deducting 5% of the expansion reserve and a 5% return on the capital of seven million dinars, noting that the board of directors ’remuneration percentage is 10% of the net profit after deducting taxes and deductions.

Required: change the numbers highlighted in the question and use it in the following requirements.

1. Preparing the draft distribution account provided by the Board of Directors?
2. Record the entries in the books of the company?
3. Organizing the profit and loss distribution account?

 

 

Q3. Write a reflection (around 500 words) which includes the following:

1. Your involvement in the group – exactly what you did and how that helped the group complete the group project.
2. What was difficult about working in a group.
3. What was beneficial about working in a group.
4. What you will do differently next time you get involved in a group project.