bankruptcy accounts for individuals and

Question

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