Calculate the financial considerations for the liquidation of Kuber Ltd. with the provided values and discharge details.

Steps to Solve

1. Calculate the Total Cash Required for Liquidation
   You need to sum the cash reserved for liquidation expenses with the liquidation expenses.
   Total cash required is:
   $$ \text{Total Cash} = \text{Cash reserved} + \text{Liquidation expenses} $$
   $$ \text{Total Cash} = 3000 + 12500 = 15500 \text{ (₹)} $$

2. Evaluate the Value of Debtors
   Given that debtors are valued at 90% of cost, you need to calculate their value depending on the total book value of debtors. Let's denote the book value of debtors as ( D ).
   Value of debtors is:
   $$ \text{Value of Debtors} = 0.9D $$

3. Calculate the Total Value of Assets
   The total value of assets includes cash, value of debtors, investments, and machinery. Let ( I ) denote the value of investments and ( M ) be the value of machinery.
   Total value of assets is:
   $$ \text{Total Assets} = \text{Cash} + \text{Value of Debtors} + I + M $$
   $$ \text{Total Assets} = 3000 + 0.9D + I + 160000 $$

4. Determine the Total Liabilities
   All liabilities are assumed to be below book value. Let ( L ) be the total liabilities. You need to replace ( L ) based on the liquidation requirements, considering the debentures and other liabilities.

5. Issuing Debentures and Preference Shares
   Compute the number of debentures issued at a 10% discount to discharge Bunty Ltd.’s debentures. This can be calculated as follows:
   Total Debentures necessary = Face value × (1 - Discount)
   $$ \text{Debentures} = 100 \times 0.9 \text{ (for 1 debenture)} $$
   Determine how many are needed to cover total liabilities.

6. Pay Preference Shares
   Calculate the total value of the preference shares paid at a 10% premium to the preference shareholders. Let ( P ) denote the total preference shares.
   $$ \text{Total Paid} = P \times 1.1 $$
   Find ( P ) based on how much needs to be settled with shareholders.

7. Summarize the Findings
   Combine all data to ensure all creditors and shareholders are adequately satisfied regarding the liquidation and distribution of assets.