The Statement of Affairs
The statement of affairs sets out:(a) The various assets of the debtor, at the values they are expected to realise;(b) The creditors, classified according to their "priority".The balancing figure on the statement of affairs is the estimated deficiency as at the date at which it was prepared.For a sole trader, one statement of affairs will be prepared to include all assets and liabilities, whether private or business.
For a partnership, a statement of affairs is prepared in respect of the partnership assets and liabilities-called the joint estate. A separate statement is also prepared for each partner, showing his personal assets and liabilities. Any surplus on a separate estate becomes an asset of the joint estate and vice versa.The pro-forma statement of affairs sets out the order in which assets are shown. The order in which liabilities are discharged is: