In re Zappala

MOORE, District Judge.

This case is here upon certificate for review of an order of the referee requiring the bankrupts to turn over to the trustee merchandise in the amount of $13,735.77, cost price, or its monetary value. It is one of those cases of which the books are full in which an “accounting” deficiency is established, which is sought to be made the basis for a turn-over order.

The testimony taken before the referee showed that on March 26, 1938, bankrupts made a financial statement that they had on hand $8,000 worth of merchandise, on which they owed $5,000. Their records showed that…