by The Liquidator’s Final Statement of Account is prepared by the liquidator of a company during the process of winding up. It summarizes the financial transactions and activities of the liquidation process and shows how the company’s assets were distributed to its creditors and shareholders.
Steps involved in preparing the Liquidator’s Final Statement of Account:
- Collect and organize all relevant financial documents: The liquidator should gather all financial documents related to the company’s assets and liabilities, including bank statements, invoices, receipts, and payment vouchers. These documents should be organized in a systematic manner for easy reference and retrieval.
- Reconcile bank accounts: The liquidator should reconcile all bank accounts of the company to ensure that all transactions have been recorded accurately and completely. Any discrepancies should be investigated and resolved before preparing the final statement.
- Prepare the Statement of Affairs: The liquidator should prepare the Statement of Affairs, which shows the value of the company’s assets and liabilities at the time of winding up. This statement will form the basis for the final statement of account.
- Determine the liquidation expenses: The liquidator should determine the expenses incurred during the liquidation process, including professional fees, administrative expenses, and any other costs related to the winding-up process.
- Determine the distribution of assets: The liquidator should determine how the company’s assets will be distributed to its creditors and shareholders, in accordance with the provisions of the Companies Act and the order of priority set out in the law.
- Prepare the Liquidator’s Final Statement of Account: The final statement of account should be prepared in a prescribed format, which varies depending on the jurisdiction. The statement should include a summary of the financial transactions and activities of the liquidation process, the amount of assets realized, the amount distributed to creditors and shareholders, and any balance remaining.
- File the statement with relevant authorities: The liquidator should file the final statement of account with the relevant authorities, such as the Registrar of Companies, as required by law.
Here is an example of a Liquidator’s Final Statement of Account prepared:
| LIQUIDATOR’S FINAL STATEMENT OF ACCOUNT |
| Summary of Transactions and Activities |
| Total assets realized |
| Total expenses incurred during the |
| liquidation process |
| Amount available for distribution |
| Distribution to Creditors |
| Creditor Name | Claim Amount | Amount Received | Balance |
| Creditor A | $100,000 | $80,000 | $20,000 |
| Creditor B | $50,000 | $50,000 | $0 |
| Creditor C | $75,000 | $75,000 | $0 |
| Total | $225,000 | $205,000 | $20,000 |
Example:
| Account Name | Amount |
| Assets | |
| Cash and cash equivalents | $150,000 |
| Marketable securities | $100,000 |
| Accounts receivable | $50,000 |
| Inventory | $200,000 |
| Property, plant, and equipment | $300,000 |
| Goodwill | $50,000 |
| Total Assets | $850,000 |
| Liabilities | |
| Accounts payable | $75,000 |
| Accrued expenses | $25,000 |
| Taxes payable | $50,000 |
| Loans payable | $150,000 |
| Total Liabilities | $300,000 |
| Equity | |
| Common stock | $100,000 |
| Retained earnings | $450,000 |
| Total Equity | $550,000 |
| Total Liabilities and Equity | $850,000 |
