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







Related Discussions:- Bankruptcy accounts for individuals and partnerships, Assignment Help, Ask Question on Bankruptcy accounts for individuals and partnerships, Get Answer, Expert's Help, Bankruptcy accounts for individuals and partnerships Discussions

Write discussion on Bankruptcy accounts for individuals and partnerships
Your posts are moderated
Related Questions
The company pays its employees at the end of the day Friday for work done during that five-day work-week. Total wages for a week are $16,000. In the current year, December 31 occur

HOW TO RECORD INVENTORY AT NET REALISABLE VALUE ON JOURNAL


State the term Reliability- Accounting Information Accounting must be free from significant error or bias. It must be capable of being relied upon by managers to represent

The current balance sheet of CBKH shows $800 million of corporate loans ($500 million of which being rated AA- and the remaining rated BBB+), $200 million of bonds issued by an OEC

Q. Describe about Financial intermediation? Financial intermediation refers to the role of a bank or else other financial institution that serves to bring together lenders and

Find out the Current dividend per share:   Data Stock price = $ 65 Return = 11% Dividend Yield =  11/ 2 = 5.5 % (given) Formula: Dividend in one year = divid

Pre-acquisition dividends Pre-acquisition dividends may also arise in the following situations; 1 ) Where the holding company acquires the subsidiary company’s shares cum-div

Show all support work for your calculations. 1.  Simple Interest versus Compound Interest [LO1]  First City Bank pays 7 percent simple interest on its savings account balances,

Accounting policies Accounting policies are the specific assumptions, bases, principles and practices that are adopted by firms in preparing financial statements. The standard