Sattaram is insolvent. He supplies to you the following information as at June 30, 2015: (all…

Sattaram is insolvent. He supplies to you the following information as at June 30, 2015: (all figures in ~)

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Creditors for goods

30,000

Stock (expected to realise 60) Book debts Good

Doubtful (expected to realise 40)

Bills receivable (~ 3,000 bad) Bills discounted (~ 2,000 bad) Loan from Mrs. Sattaram

30,000

Salary due to clerk

400

4,000

Taxes owing to Government

1,200

10,000

Bank loan sec. by lien on stock of bk. value of ~ 20,000

10,000

5,000

Cash in hand

100

6,000

Furniture (expected to realise ~ 2,000)

4,000

10,000

Sattaram commenced business six years ago with a capital of ~ 25,000. He drew ~ 5,000 each year for private purpose but did not maintain proper books of account. Mrs. Sattaram gave up her jewellery valued at ~ 4,000 to the receiver. Prepare the Statement of Affairs and the relevant Deficiency Account.