Bankruptcy accounts for individuals and partnerships, Financial Accounting

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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’

Unsecured creditors

Cash at bank

Creditors fully secured

Cash in hand

Less value of security

(x)

Stock-in-trade

Surplus to contra

Machinery

Creditors partly secured

Trade fixtures

Less value of security

(x)

Furniture

Life policies

Liabilities on bills discounted

Stocks, shares and other investments

Contingent and other liabilities

Bank debts: Good

Preferential creditors

: Doubtful

deducted per contra

: Bad

Estimated to produce

Bills of exchange

Estimated to produce

Surplus from secured Creditors

per contra

Deduct preferential

(x)

Creditors per contra

Deficiency as per

Deficiency a/c

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

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