Bankruptcy accounts for individuals and partnerships, Financial Accounting

BANKRUPTCY ACCOUNTS FOR INDIVIDUALS AND PARTNERSHIPS

These include a statement of affairs and deficiency account. A statement of affairs takes the following form:

                                                            INDIVIDUAL

STATEMENT OF AFFAIRS AS AT

(DATE), DATE OF RECEIVING ORDER

Gross Liabilities

Liabilities as stated & estimated by debtor

Expected to rank

Assets as stated & estimated by debtor

 

Estimated to produce

Sh ‘000’

 

Sh ‘000’

 

Sh ‘000’

Sh ‘000’

x

Unsecured creditors

 

 
x

Cash at bank

 

x

x

Creditors fully secured

x

Cash in hand

 

x

 

Less value of security

(x)

Stock-in-trade

 

x

 

Surplus to contra

x

Machinery

 

x

x

Creditors partly secured

x

Trade fixtures

 

x

 

Less value of security

(x)

Furniture

 

x

 

 

 

x

 

Life policies

 

 

x

x

Liabilities on bills discounted

x

Stocks, shares and other investments

 

 

x

Contingent and other liabilities

x

Bank debts:  Good

 

x

x

Preferential creditors

 

               : Doubtful

x

 

 

deducted per contra

 

 
x

               : Bad

x

 

 

 

 

 

x

 

 

 

 

Estimated to produce

 

x

 

 

 

Bills of exchange

x

 

 

 

 

Estimated to produce

 

x

 

 

 

Surplus from secured Creditors

 

 

 

 

 

per contra

 

x

 

 

 

 

 

x

 

 

 

Deduct preferential

 

(x)

 

 

 

Creditors per contra

 

x

 

 

 

 

 

 

 

 

 

Deficiency as per

 

 

 

 

 

Deficiency a/c

 

x

xx

 

xx

 

 

xx

 

 

DEFICIENCY (SURPLUS) A/C

 

Sh ‘000’

 

Sh ‘000’

Excess of assets over liabilities

 

Losses from Trading

x

(One year before receiving order)

x

Estimated loss on realization of

 

Excess of private assets over

 

Assets

x

Liabilities (one year before receiving

 

Drawings

x

Order)

x

 

 

Net profits from the business for the

 

 

 

Period under review

x

 

 

Other receipts-gifts legacies etc

x

 

 

Deficiency as per statement of affairs

x

 

 

 

xx

 

xx

 

 

Posted Date: 12/13/2012 1:39:31 AM | Location : United States







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