Sattaram is insolvent. He supplies to you the following information as at June 30, 2015: (all…
- May 25, 2021/ Finance
Sattaram is insolvent. He supplies to you the following information as at June 30, 2015: (all figures in ~)
|
Creditors for goods |
30,000 |
Stock (expected to realise 60 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 |
) Book debts GoodSattaram 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.
