Insolvency Accounts Individual And Partnership Firm Notes

Insolvency Accounts Individual And Partnership Firm BCOM 1st Year Long Notes :- In this post you will get full information related to BCOM Insolvency accounts-Individual And Partnership firm Short Question Answer Study Material Notes Sample Model Paper Unit wise Chapter Wise syllabus of the Content.

Section B

LONG ANSWER QUESTIONS

Q.1. Chandra Shekhar finds himself Insolvent on 1-1-2015. you are instructed to prepare his Statement of Affairs as at that date and the Deficiency Account for the three years ended on that date. The information you are able to obtain as to his position is as follows:

Sundry Debtors (Good * 10,000; Doubtful * 40,500, Estimated to produce 20,000).

Shares in cash Ltd. (estimated to produce 91,000) 1,10,000

Creditors on open account 95,000

Creditors holding a first charge on investments 40,000

Creditors holding a second charge on investments to the extent * 30,000 35,000

B/R discounted (of which 3,500 are likely to be dishonoured) 6,000

Creditors for rent taxes, etc. (* 1,500 are preferential) 3,000

Furniture (estimated to realise 3,000) 4,000

Cash in hand 120

Stock-in-trade (estimated to realise 30,000) 35,880

Bills receivable (estimated to realise 7,000) 13,000

Loss on stock exchange 15,000

He started business on 1.1.2012 with a capital of 50,000. In the first two years, there was a profit of * 27,500 and in the third year there was a loss of 5,000. He has been allowed interest at 6% p.a. on his original capital for each of the three years. Withdrawals for the whole period amount to *26,000.

Out of his withdrawals, he had purchased jewellery for his wife at a price of 3.000. His wife offered Inis jewellery towards paying the debts of her husband. The jewellery is expected to realise * 4,000. ne nas to pay 4,000 for a gambling loss.