Statement of Affairs:

A Statement of Affairs is a document that shows the assets and liabilities of a company or an individual at a particular point in time. It is commonly used in bankruptcy or insolvency proceedings to help determine the financial position of the debtor. Here is a specimen of Statement of Affairs:

Name of the Debtor: XYZ Ltd.
Date of Statement: 31st December 2021

Assets:

- Cash in Hand: $10,000
- Cash at Bank: $25,000
- Accounts Receivable: $50,000
- Inventory: $100,000
- Land and Building: $500,000
- Plant and Machinery: $200,000
- Goodwill: $50,000
- Total Assets: $935,000

Liabilities:

- Accounts Payable: $75,000
- Bank Overdraft: $20,000
- Loan from Bank: $300,000
- Unpaid Wages: $5,000
- Tax Payable: $10,000
- Total Liabilities: $410,000

Net Worth:

- Total Assets - Total Liabilities = $525,000

Deficiency Account:

A Deficiency Account is a financial statement that shows the deficiency in a company's assets compared to its liabilities. It is used in bankruptcy or insolvency proceedings to help determine the amount of money that is owed to creditors. Here is a specimen of Deficiency Account:

Name of the Debtor: XYZ Ltd.
Date of Statement: 31st December 2021

Liabilities:

- Accounts Payable: $75,000
- Bank Overdraft: $20,000
- Loan from Bank: $300,000
- Unpaid Wages: $5,000
- Tax Payable: $10,000
- Total Liabilities: $410,000

Assets:

- Cash in Hand: $10,000
- Cash at Bank: $25,000
- Accounts Receivable: $50,000
- Inventory: $100,000
- Land and Building: $500,000
- Plant and Machinery: $200,000
- Goodwill: $50,000
- Total Assets: $935,000

Deficiency:

- Total Liabilities - Total Assets = $475,000

In this case, the deficiency account shows that the company's liabilities exceed its assets by $475,000. This means that the company is insolvent and may need to declare bankruptcy.