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A) From the following details ascertain unsecured creditors to be shown in statement of affairs: Creditors for goods 80,000 Bills payable 8,000 Loan from Bank (unsecured) 20,000 Bank over draft 6,000 Loan on security of Machinery 40,000 Estimated realizable value of Machinery 32,000 Contingent liabilities 31,000 (20% expected to rank) 25,000 (10% expected to rank)?
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A) From the following details ascertain unsecured creditors to be show...
Unsecured Creditors to be Shown in Statement of Affairs
Creditors to be included in the statement of affairs are those who are unsecured and have no claim on any specific asset of the company. The following are the unsecured creditors to be shown in the statement of affairs:
1. Creditors for goods - 80,000
2. Bills payable - 8,000
3. Loan from bank (unsecured) - 20,000
4. Bank overdraft - 6,000
Explanation:
1. Creditors for goods - These are the suppliers from whom the company has purchased goods but has not paid yet. Since they have no claim on any specific asset of the company, they are considered unsecured creditors.
2. Bills payable - These are the bills that the company has accepted but not yet paid. They are considered unsecured creditors because they have no claim on any specific asset of the company.
3. Loan from bank (unsecured) - This loan is not secured against any specific asset of the company, so it is considered an unsecured loan.
4. Bank overdraft - This is a facility provided by the bank where the company can withdraw more than the available balance in the account. Since it is not secured against any specific asset of the company, it is considered an unsecured liability.
Contingent liabilities:
Contingent liabilities are those liabilities that may or may not arise in the future depending on the occurrence or non-occurrence of certain events. Since they are not certain, they are not included in the statement of affairs. However, if they are expected to give rise to a liability, a provision is made for them.
Expected to rank:
Expected to rank means the percentage of the contingent liability that is expected to give rise to a liability. In this case, 20% of the contingent liability of 31,000 is expected to give rise to a liability, which is 6,200. Similarly, 10% of the contingent liability of 25,000 is expected to give rise to a liability, which is 2,500. These amounts are included in the statement of affairs as provisions.
Creditors to be included in the statement of affairs are those who are unsecured and have no claim on any specific asset of the company. The following are the unsecured creditors to be shown in the statement of affairs:
1. Creditors for goods - 80,000
2. Bills payable - 8,000
3. Loan from bank (unsecured) - 20,000
4. Bank overdraft - 6,000
Explanation:
1. Creditors for goods - These are the suppliers from whom the company has purchased goods but has not paid yet. Since they have no claim on any specific asset of the company, they are considered unsecured creditors.
2. Bills payable - These are the bills that the company has accepted but not yet paid. They are considered unsecured creditors because they have no claim on any specific asset of the company.
3. Loan from bank (unsecured) - This loan is not secured against any specific asset of the company, so it is considered an unsecured loan.
4. Bank overdraft - This is a facility provided by the bank where the company can withdraw more than the available balance in the account. Since it is not secured against any specific asset of the company, it is considered an unsecured liability.
Contingent liabilities:
Contingent liabilities are those liabilities that may or may not arise in the future depending on the occurrence or non-occurrence of certain events. Since they are not certain, they are not included in the statement of affairs. However, if they are expected to give rise to a liability, a provision is made for them.
Expected to rank:
Expected to rank means the percentage of the contingent liability that is expected to give rise to a liability. In this case, 20% of the contingent liability of 31,000 is expected to give rise to a liability, which is 6,200. Similarly, 10% of the contingent liability of 25,000 is expected to give rise to a liability, which is 2,500. These amounts are included in the statement of affairs as provisions.
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A) From the following details ascertain unsecured creditors to be show...
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A) From the following details ascertain unsecured creditors to be shown in statement of affairs: Creditors for goods 80,000 Bills payable 8,000 Loan from Bank (unsecured) 20,000 Bank over draft 6,000 Loan on security of Machinery 40,000 Estimated realizable value of Machinery 32,000 Contingent liabilities 31,000 (20% expected to rank) 25,000 (10% expected to rank)?
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A) From the following details ascertain unsecured creditors to be shown in statement of affairs: Creditors for goods 80,000 Bills payable 8,000 Loan from Bank (unsecured) 20,000 Bank over draft 6,000 Loan on security of Machinery 40,000 Estimated realizable value of Machinery 32,000 Contingent liabilities 31,000 (20% expected to rank) 25,000 (10% expected to rank)? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about A) From the following details ascertain unsecured creditors to be shown in statement of affairs: Creditors for goods 80,000 Bills payable 8,000 Loan from Bank (unsecured) 20,000 Bank over draft 6,000 Loan on security of Machinery 40,000 Estimated realizable value of Machinery 32,000 Contingent liabilities 31,000 (20% expected to rank) 25,000 (10% expected to rank)? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A) From the following details ascertain unsecured creditors to be shown in statement of affairs: Creditors for goods 80,000 Bills payable 8,000 Loan from Bank (unsecured) 20,000 Bank over draft 6,000 Loan on security of Machinery 40,000 Estimated realizable value of Machinery 32,000 Contingent liabilities 31,000 (20% expected to rank) 25,000 (10% expected to rank)?.
A) From the following details ascertain unsecured creditors to be shown in statement of affairs: Creditors for goods 80,000 Bills payable 8,000 Loan from Bank (unsecured) 20,000 Bank over draft 6,000 Loan on security of Machinery 40,000 Estimated realizable value of Machinery 32,000 Contingent liabilities 31,000 (20% expected to rank) 25,000 (10% expected to rank)? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about A) From the following details ascertain unsecured creditors to be shown in statement of affairs: Creditors for goods 80,000 Bills payable 8,000 Loan from Bank (unsecured) 20,000 Bank over draft 6,000 Loan on security of Machinery 40,000 Estimated realizable value of Machinery 32,000 Contingent liabilities 31,000 (20% expected to rank) 25,000 (10% expected to rank)? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A) From the following details ascertain unsecured creditors to be shown in statement of affairs: Creditors for goods 80,000 Bills payable 8,000 Loan from Bank (unsecured) 20,000 Bank over draft 6,000 Loan on security of Machinery 40,000 Estimated realizable value of Machinery 32,000 Contingent liabilities 31,000 (20% expected to rank) 25,000 (10% expected to rank)?.
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A) From the following details ascertain unsecured creditors to be shown in statement of affairs: Creditors for goods 80,000 Bills payable 8,000 Loan from Bank (unsecured) 20,000 Bank over draft 6,000 Loan on security of Machinery 40,000 Estimated realizable value of Machinery 32,000 Contingent liabilities 31,000 (20% expected to rank) 25,000 (10% expected to rank)?, a detailed solution for A) From the following details ascertain unsecured creditors to be shown in statement of affairs: Creditors for goods 80,000 Bills payable 8,000 Loan from Bank (unsecured) 20,000 Bank over draft 6,000 Loan on security of Machinery 40,000 Estimated realizable value of Machinery 32,000 Contingent liabilities 31,000 (20% expected to rank) 25,000 (10% expected to rank)? has been provided alongside types of A) From the following details ascertain unsecured creditors to be shown in statement of affairs: Creditors for goods 80,000 Bills payable 8,000 Loan from Bank (unsecured) 20,000 Bank over draft 6,000 Loan on security of Machinery 40,000 Estimated realizable value of Machinery 32,000 Contingent liabilities 31,000 (20% expected to rank) 25,000 (10% expected to rank)? theory, EduRev gives you an
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