The deficiency account-bankruptcy accounts, Financial Accounting

The Deficiency Account

Purpose of deficiency account:

The purpose of the deficiency account is to explain the deficit shown on the statement of affairs. The deficiency account opens with the surplus of assets over liabilities of the bankrupt, one year before receiving order. This figure consists of the capital account of his business plus his net private assets at that date.

Items contributing to deficit:

The following items will be shown on the right-hand side of the deficiency account as being items contributing to the deficit:

1.    Losses during the period as per the profit and loss account;
2.    Bad debts;
3.    Drawings and household expenses;
4.    Estimated losses on the realisation of assets:

  • Stock
  • Machinery
  • Property
  • Other assets.
Posted Date: 12/13/2012 3:02:59 AM | Location : United States







Related Discussions:- The deficiency account-bankruptcy accounts, Assignment Help, Ask Question on The deficiency account-bankruptcy accounts, Get Answer, Expert's Help, The deficiency account-bankruptcy accounts Discussions

Write discussion on The deficiency account-bankruptcy accounts
Your posts are moderated
Related Questions
PVA ∞ = A(1 + k) -1 +  A(1 + k) -2 +..... + A(1 + k ) ∞ + 1 + A (1 + k) ∞ Multiplying both the sides of Eq (a7) by (1+k) provides: PVA ∞  = (1 +k) = A(1 +k) +A (1 +k)

Q. Evaluate Equivalent annual cost? There are a number of techniques to answering this question and two are presented. The first difficulty is in deciding which broad approach

Show that if an investment of P dollars declines by 4% during a year , the balance at the end of the year is P(1-.04) that is P(.96) ?

PROPERTY IN BANKRUPT'S REPUTED OWNERSHIP The trustee may claim property owned by third parties which is in the bankrupt's possession at the commencement of the bankruptcy if:

How do you report a note in exchange for treasury stock

Form No special form is normally required for the creation of a trust except that a declaration of trust respecting land or any interest therein must be manifested and proved b

Q. Show the Foreign Tax Credit? Foreign Tax Credit - A U.S. taxpayer who pays or accrues income tax to a foreign country may elect to credit or deduct these taxes in a determin

THE PETITION Petition by debtor : If the debtor presents his own petition, a receiving order is made at once without a court hearing and an adjudication order may also be ma

you are aceo of acme ,inc located in united states .you use the discounted pay back period method and accept all projects that pay back in hree years.a project that will cost 5,500

Sundry Matters 1) The accounting system is also appropriate for departmental accounts. 2) The branch stock account is a practical means of controlling stock at the branch.