Criteria to check insolvency
This query is : Resolved
16 November 2015
Good evening everyone
I would like to ask that whether we will take the current assets and current liabilities for checking the solvency status of the company or will take the total assets and total liabilities and equity for checking the insolvency status.
Thanks in advance
I would like to ask that whether we will take the current assets and current liabilities for checking the solvency status of the company or will take the total assets and total liabilities and equity for checking the insolvency status.
Thanks in advance
16 November 2015
total assets and total liabilities shall be considered.
16 November 2015
ASSETS
Current Assets:
Cash at Hand 0.00
Cash at Bank 22,821.44
Accounts Receivable 0.00
Less: Reserve for Bad Debts 0.00
Stock 7,795.28
Prepaid Expenses 0.00
Notes Receivable 0.00
Total Current Assets 30,616.72
Fixed Assets:
Computers 4032.33
Less:Accumulated Depreciation -2419.40
Furniture and Fixtures 0.00
Less:Accumulated Depreciation 0.00
Equipment 0.00
Less:Accumulated Depreciation 0.00
Buildings 0.00
Less:Accumulated Depreciation 0.00
Land 1,00,000.00
Total Fixed Assets 1,01,612.93
Other Assets:
Goodwill 0.00
Total Other Assets 0.00
Total Assets 1,32,229.65
LIABILITIES & EQUITY
Current Liabilities:
Accounts Payable 0.00
Sales Taxes Payable 0.00
Payroll Taxes Payable 0.00
Income Taxes Payable 0.00
Accrued Wages Payable 0.00
Unearned Revenues 0.00
Bank Overdraft 0.00
Shareholders' loans 53,433.75
Total Current Liabilities 53,433.75
Long-Term Liabilities:
Long-term Bank Loans Payable 0.00
Mortgage Payable 0.00
Total Long-Term Liabilities 0.00
Total Liabilities 53,433.75
Capital & Reserves
Capital 1,000,00.00
Add: Net Profit -21,204.10
Less: Drawings 0.00
Net Capital 787,95.90
Total Liabilities and Equity 1,32,229.65
Please consider the above Balance Sheet and advice me whether the company is solvent or insolvent??
Thanks
Current Assets:
Cash at Hand 0.00
Cash at Bank 22,821.44
Accounts Receivable 0.00
Less: Reserve for Bad Debts 0.00
Stock 7,795.28
Prepaid Expenses 0.00
Notes Receivable 0.00
Total Current Assets 30,616.72
Fixed Assets:
Computers 4032.33
Less:Accumulated Depreciation -2419.40
Furniture and Fixtures 0.00
Less:Accumulated Depreciation 0.00
Equipment 0.00
Less:Accumulated Depreciation 0.00
Buildings 0.00
Less:Accumulated Depreciation 0.00
Land 1,00,000.00
Total Fixed Assets 1,01,612.93
Other Assets:
Goodwill 0.00
Total Other Assets 0.00
Total Assets 1,32,229.65
LIABILITIES & EQUITY
Current Liabilities:
Accounts Payable 0.00
Sales Taxes Payable 0.00
Payroll Taxes Payable 0.00
Income Taxes Payable 0.00
Accrued Wages Payable 0.00
Unearned Revenues 0.00
Bank Overdraft 0.00
Shareholders' loans 53,433.75
Total Current Liabilities 53,433.75
Long-Term Liabilities:
Long-term Bank Loans Payable 0.00
Mortgage Payable 0.00
Total Long-Term Liabilities 0.00
Total Liabilities 53,433.75
Capital & Reserves
Capital 1,000,00.00
Add: Net Profit -21,204.10
Less: Drawings 0.00
Net Capital 787,95.90
Total Liabilities and Equity 1,32,229.65
Please consider the above Balance Sheet and advice me whether the company is solvent or insolvent??
Thanks
16 November 2015
ASSETS
Current Assets:
Cash at Hand 0.00
Cash at Bank 22,821.44
Accounts Receivable 0.00
Less: Reserve for Bad Debts 0.00
Stock 7,795.28
Prepaid Expenses 0.00
Notes Receivable 0.00
Total Current Assets 30,616.72
Fixed Assets:
Computers 4032.33
Less:Accumulated Depreciation -2419.40
Furniture and Fixtures 0.00
Less:Accumulated Depreciation 0.00
Equipment 0.00
Less:Accumulated Depreciation 0.00
Buildings 0.00
Less:Accumulated Depreciation 0.00
Land 1,00,000.00
Total Fixed Assets 1,01,612.93
Other Assets:
Goodwill 0.00
Total Other Assets 0.00
Total Assets 1,32,229.65
LIABILITIES & EQUITY
Current Liabilities:
Accounts Payable 0.00
Sales Taxes Payable 0.00
Payroll Taxes Payable 0.00
Income Taxes Payable 0.00
Accrued Wages Payable 0.00
Unearned Revenues 0.00
Bank Overdraft 0.00
Shareholders' loans 53,433.75
Total Current Liabilities 53,433.75
Long-Term Liabilities:
Long-term Bank Loans Payable 0.00
Mortgage Payable 0.00
Total Long-Term Liabilities 0.00
Total Liabilities 53,433.75
Capital & Reserves
Capital 1,000,00.00
Add: Net Profit -21,204.10
Less: Drawings 0.00
Net Capital 787,95.90
Total Liabilities and Equity 1,32,229.65
Please consider the above Balance Sheet and advice me whether the company is solvent or insolvent??
Thanks
Current Assets:
Cash at Hand 0.00
Cash at Bank 22,821.44
Accounts Receivable 0.00
Less: Reserve for Bad Debts 0.00
Stock 7,795.28
Prepaid Expenses 0.00
Notes Receivable 0.00
Total Current Assets 30,616.72
Fixed Assets:
Computers 4032.33
Less:Accumulated Depreciation -2419.40
Furniture and Fixtures 0.00
Less:Accumulated Depreciation 0.00
Equipment 0.00
Less:Accumulated Depreciation 0.00
Buildings 0.00
Less:Accumulated Depreciation 0.00
Land 1,00,000.00
Total Fixed Assets 1,01,612.93
Other Assets:
Goodwill 0.00
Total Other Assets 0.00
Total Assets 1,32,229.65
LIABILITIES & EQUITY
Current Liabilities:
Accounts Payable 0.00
Sales Taxes Payable 0.00
Payroll Taxes Payable 0.00
Income Taxes Payable 0.00
Accrued Wages Payable 0.00
Unearned Revenues 0.00
Bank Overdraft 0.00
Shareholders' loans 53,433.75
Total Current Liabilities 53,433.75
Long-Term Liabilities:
Long-term Bank Loans Payable 0.00
Mortgage Payable 0.00
Total Long-Term Liabilities 0.00
Total Liabilities 53,433.75
Capital & Reserves
Capital 1,000,00.00
Add: Net Profit -21,204.10
Less: Drawings 0.00
Net Capital 787,95.90
Total Liabilities and Equity 1,32,229.65
Please consider the above Balance Sheet and advice me whether the company is solvent or insolvent??
Thanks
18 November 2015
what is the market value of LAND?
18 November 2015
It is same i.e Rs. 100,000
18 November 2015
Well! That was an indirect query question.
Anyway, doesn't matter. Let the book value be equal to market value. You are genious to have such a coompany for your solvency consideration.
The company is solvent to the extent of share capital i.e. 78,795.90
Anyway, doesn't matter. Let the book value be equal to market value. You are genious to have such a coompany for your solvency consideration.
The company is solvent to the extent of share capital i.e. 78,795.90
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- TAN for Partnership
- Treatment of Pension ?annuity returns on PMVY
- Long Term Service award taxability in hands of company
- Free lancer income
- Last year TDS Claim
- Specified Profession
- STCG FOR GOLD ETFs
- Soyabean hsn code and gst rate
- NON- SUBMISSION OF LLP FORM 3
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
