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
The following accounts and balances have been taken from the general ledger trial balance of Daiton Repairs Limited as at October 31, 19×2, after its first year of operation. Adjus

I need help with a mini accounting project. Here is a link to the questions I need to be answered. Read the questions and instructions and if you think you can complete the case wi

Tony and Suzie are ready to expand Great Adventures even further in 2019. Tony believes that many groups in the community (for example, Boy Scouts, church groups, civic groups, and

Subsidiary company exclusion features 1) The standard does not require consolidation of a subsidiary acquired when there is evidence that the control is intended to be temporar

How is a company’s cost of capital affected by its tax rate?

how do we calculate bonus issu4 and rights issue

You are considering whether or not to go to graduate school. Well... there are many things to consider, of course, such as the type of job you would thus get, the opportunity to li

State the Economic benefit of having accounting information Economic benefit of having accounting information is even harder to assess.  It's possible to implement some 'scienc

Adjusting Entries Clapton Guitar Company entered into the following transactions during 2013. [The transactions were properly recorded in permanent (balance sheet) accounts unless

The assignment requires a significant part of the work to be done in a spreadsheet. I have not nominated any particular vendoar or any particular version. The choice is up to you,