Liquidation of a company- treatment of surplus ( negative) in preparing liquidators statement

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This discussion clarifies how to handle a surplus or deficit shown on a company's balance sheet when preparing a liquidator's statement. The focus is on the cash receipts and their utilisation, rather than the balance sheet figures themselves. The advice is to stick to the fundamental principles of liquidator accounting.

Sreekumar J Pai

Sreekumar J Pai

(Querist)

11 January 2025 company balance sheet shows surplus ( negative balance) on the asset side of the balance sheet. How it should be treated while preparing liquidator's statement?

Nikhil Kaushik

Nikhil Kaushik (Expert)

12 January 2025 liquidator's statement is about cash receipts and utilization thereof. What does it have to do with the surplus/deficit in the balancesheet ?

Sreekumar J Pai

Sreekumar J Pai

(Querist)

14 January 2025 Got the point 👉 thanks a lot.

Nikhil Kaushik

Nikhil Kaushik (Expert)

15 January 2025 you are welcome. just follow the basics right.

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