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
Financials Investments, a group of financial advisors and retirement planners, has been requested to provide advice on how to invest $200,000 for one of its clients. The client has

A changeable instrument is deemed part liability and part equity. IAS 32 necessitate that each part is measured individually on initial recognition. The liability element is

how to solve the question income statements

I am an AAT student studying lvl 3 AAT at college. I wish to learn how to complete self assessment end of year tax return forms for other people. That is because I have already bee

The common stock of the CC Corporation has been trading in a narrow price range of around $50 for months, and you are convinced it is going to stay in that range for the next 3 mon

Comprehensive Basis of Accounting (OCBOA) - Consistent accounting basis other than GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) used for financial reporting. Illustrations compr

Investments under the Trustee Act The act defines the categories of investment as follows:         1. Fixed interest securities are: Securities which under their te

1. You have decided to sell some goods at a local music festival. You have hired a sales stand for $500. Your cost per item is $3 and you will sell each item for $5. When you did y

The twin objectives of inventory management are financial and operational. The operational objective implies that the materials and spares would be obtainable in sufficient quantit

1.what are the various fields of accounting and how do they differ? 2. how are revenues and expenses affect the owners' equity account? 3. why are revenues and expenses recor