JUDGMENT - (1) This appeal arises out of a suit filed by the Court Receiver of a firm called Prabhat Trading Company against the defendant for the recovery of a sum of Rs. 7,000/- and odd due at the foot of the accounts. The Prabhat Trading Company (hereinafter referred to as the plaintiff-firm) was a firm carrying on business at Bombay in the sale and purchase of papaer and engineering goods. The defendant was firm carrying on business as iron and brass founders at Ahmedabad. Among other things they were manufacturing lathe machines. The defendant-firm was placing others with the plaintff-firm for the supply of engineering goods. In the same way, the plaintff-firm was also placing orders with the defendant-firm for the supply of the products of their factory. There was an account opened in the name of the defendant-firm in the plaintiff-firm, and entries were made in this account as transactions took place. The last entry made in the account with the plaintiff-firm was on 17-6-1950. It is common ground that the accounting year ran from Divali to Divali and during the relevant year viz., 1949-50, 9-11-50 would be the closing date of the accounting year. Disputes started between the

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